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5 Best Retail ETFs To Buy

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In this article, we discuss 5 best retail ETFs to buy. If you want to read our discussion on the retail industry, head over to 10 Best Retail ETFs To Buy

5. Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY)

5-Year Share Price Performance as of April 1: 56.73%

Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) aims to match the price and yield performance of the Consumer Discretionary Select Sector Index. This index represents the consumer discretionary sector of the S&P 500 Index. The fund provides targeted exposure to companies across specialty retail, broadline retail, hotels, restaurants and leisure, textiles, apparel and luxury goods, household durables, automobiles, automobile components, distributors, leisure products, and diversified consumer services. Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) ranks 5th on our list of the best retail ETFs. The fund was established on December 16, 1998. As of April 1, 2024, the ETF has a gross expense ratio of 0.09%, and a portfolio of 53 stocks. The assets under management came in at $20 billion. 

Tesla, Inc. (NASDAQ:TSLA) is one of the top holdings of the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY). Morgan Stanley has a long-term outlook on Tesla, Inc. (NASDAQ:TSLA), setting a price target of $320 on March 22. This target comprises separate valuations for Tesla’s automotive hardware, auto-related software and services, and energy-related businesses. Analyst Adam Jonas noted Tesla’s expertise in computer vision, machine learning, AI, and robotics, which could have numerous commercial applications. However, Morgan Stanley hasn’t included these potential revenue streams in its current model or valuation.

According to Insider Monkey’s fourth quarter database, 82 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA), compared to 81 funds in the preceding quarter. 

Alger Spectra Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its fourth quarter 2023 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Tesla is a transportation company that is setting the pace for industry innovation, in our view. During the quarter, the company reported weaker-than-expected fiscal third quarter earnings, where gross margins were negatively impacted by factory downtime and ramping production volumes at new manufacturing plants. However, the company noted that they remain confident by the amount of data that Tesla’s established and growing fleet of vehicles has gathered, which may bode well for the company’s full self-driving capabilities.”

Follow Tesla Inc. (NASDAQ:TSLA)

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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