For investors seeking momentum, VanEck Vectors Retail ETF RTH is probably on the radar. The fund just hit a 52-week high and is up 25% from its 52-week low of $191.40 per share.
Are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
RTH in Focus
VanEck Vectors Retail ETF provides exposure to the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. It charges 35 bps in annual fees (see: all the Consumer Discretionary ETFs here).
Why the Move?
The retail corner of the broad consumer discretionary sector has been an area to watch lately, given the Fed’s latest policy decision. Fed Chair Jerome Powell kept interest rate steady at 4.25-4.50% in the first decision of Trump's presidency after reducing the rates for three straight meetings in 2024. Lower interest rates have led to reduced borrowing costs, helping businesses to expand their operations easily and resulting in increased profitability.
More Gains Ahead?
Currently, RTH has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. RTH might remain strong, given its weighted alpha of 23.53 and a lower 20-day volatility of 11.38%. There is definitely still some promise for investors who want to ride on this surging ETF.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>VanEck Retail ETF (RTH): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
