Todd Rosenbluth on Earnings and Retail Edge ETFs

VettaFi’s Head of Research Todd Rosenbluth appeared on ETF Edge alongside Amplify’s Brian Giere to discuss dividend and retail in both the online and mortar space.

Dividends and retail in a rising price environment

Inflation remains at the forefront of many investors’ minds, especially with the Fed showing no signs of changing course despite recent CPI numbers. As interest rates rose in fixed income performance, investors sought profits.

amplify Amplify CWP’s DIVO ETFs It was in the top 5% of ETFs in terms of inflows, but there are a number of options available to investors looking to increase their income. Rosenbluth noted that both dividend income strategies and covered call strategies have piqued investor interest this year. DIVO combines the two strategies, but other options include Schwab US Dividend ETF (SCHD) The Vanguard High Dividend Yield Fund (VYM) and the JPMorgan Premium Income Equity Fund (JEPI). SCHD gives investors an index-based approach, while VYM focuses on higher returns. Meanwhile, JEPI uses covered calls to help generate income. “It was one of the 10 most popular ETFs, JEPI, in 2022,” Rosenbluth noted.

According to Rosenbluth, recent surveys reveal that “rather than looking at it from an income component, which they’ve historically done in 2022 in a high rate environment, they’re now looking at more growth from these strategies.” Rosenbluth pointed towards Dividend Growth Dividend Growth Fund (DGRW) and the Dividend Rating Vanguard Index (VIG) As potential beneficiaries as the focus of interest from income towards growth.

Online and offline retail

The complex post-pandemic situation has made the consumer staples space interesting. On the other hand, the declining interest in the ongoing global epidemic has made people interested in the traditional shopping experience. On the other hand, the dismal economic outlook may have many interested in the kinds of deals available online. Goldman Sachs recently indicated that consumers are looking for value this year.

With Black Friday approaching and the holiday shopping season about to begin, a number of ETFs are worth considering. The Inflate Online Retail ETF (IBUY) It’s been a tough year but he’s getting ready for the holidays. Rosenbluth pointed out that the SPDR Consumer Discretionary Sector Selection Fund (XLY) It is the largest among the broadly traded investment funds. “People tend to think of the consumer as only associated with retail, and Amazon is the largest company that owns the XLY ETF, but you really need to understand that Tesla is a large equity company, it’s the second largest,” said Rosenbluth. Given the breadth of XLY, investors looking for a more targeted approach could look to SPDR S&P Retail ETF (XRT) It is an evenly weighted fund, focused primarily on bricks and mortar. According to Rosenbluth, “The ETF, XRT, has seen strong inflows over the past month.” Meanwhile, a more focused online approach can be found at ProShares Online Retail ETF (ONLN).

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