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Black Friday Turns Online This Year: 5 ETF Deals

The holiday season has kicked off with Thanksgiving Day, and now it’s time for Black Friday — one of the busiest shopping days of the year. Due to the COVID-19 pandemic, more Americans have shifted to online shopping in order to avoid gatherings and maintain social distancing (read: 5 ETFs Deserving Special Thanks in Pandemic-Stricken 2020).

Per Adobe, higher number of consumers will shop online on Black Friday this year. Online spending is expected to grow 39% year over year to $10.3 billion on the day. emarketer projects Black Friday to experience its first-ever $10.2 billion spending day, up 39.4% year over year. In fact, Cyber Five (Thanksgiving Day through Cyber Monday) would bring in about $39.1 billion ecommerce sales, up 39.6% from last year. About $6.2 billion is expected to come from Thanksgiving Day, $4.8 billion from Small Business Saturday, $5.1 billion will come from Sunday and $12.9 billion is expected to come on Cyber Monday.

Black Friday online sales bonanza is in full swing as a number of retailers had already perked up their deals at the start of this month to lure customers. As such, Black Friday has turned into Cyber Month this year. We have highlighted some of the best deals from the retailers below:

Hot Retailers

Amazon’s AMZN 48-hour Prime Day shopping event unofficially kicked off the holiday season on Oct 13. The e-commerce giant launched its Black Friday sale on Nov 16. Like last year, Amazon’s Black Friday sale will run for a week and will highlight many devices, gadgets, and other hot items from 2020. Some of the best deals include Echo Flex ($9.99, originally $24.99), 4th-Gen Echo Dot ($28.99, originally $49.99), Echo Show 8 ($64.99, originally $129.99) and Fire TV Recast ($179.99, originally $279.99).

Wal-Mart WMT, the world's largest retailer, has split up Black Friday deals into three separate events throughout the month of November. The first and second events are already live and the third launched online on Nov 25 at 7 p.m. and in stores on Nov 27. The company is offering great prices on electronics, toys and gifts across apparel and home, as well as seasonal décor favorites. More deals will drop online on Nov 27 midnight, and then in store the following morning at 5 a.m. Some historically low-price products include AirPods Pro at $169, Apple Watch Series 3 starting at $119, Nintendo Switch Mario Kart bundle at $299. Instant Pot Viva multicooker at $49, Samsung 65-inch 4K UHD Smart TV at $478 and some more exciting deals available at Walmart (read: Solid Q3 Earnings Drive Retail ETFs Higher).

Black Friday sales are also live on Target TGT, Best Buy BBY and Home Depot HD. Target has slashed prices on everything from headphones to video games to robot vacuums. Plus, the retailer is offering a price adjustment if a customer purchases any product that's labeled "Black Friday Deal" and the price goes lower than what they paid before Dec 24.

Best Buy is offering epic discounts with some of the hot deals including 50-inch 4K TV Smart TV on sale for $229.99, a massive $500 discount on the HP Spectre x360 2-in-1 laptop, all-new Fire TV Stick Lite down to a record-low price of $17.99, a $200 price cut on the best-selling iRobot Roomba Robot Vacuum and Bella Pro Series air fryer on sale for just $29.99. Apart from incredible deals, Best Buy is also offering Black Friday Prices Guaranteed policy for its members, which means if the price goes lower on certain items before Nov 28, the retailer will refund for the difference.

Home Depot kicked off its Black Friday deals on Nov 6, which will stretch nearly two months with deals available in both stores and online. Some of the best deals include iRobot Roomba i3+ (3550) WiFi Robotic Vacuum for $399.99 (Save $165), Samsung 24-Inch Top-Control Dishwasher for $448 (Save $81), LG Electronics 26-Cubic Foot 3-Door French-Door Smart Refrigerator for $1,998 (Save $1,051), and Sealy Twin Spring and Memory Foam Hybrid Mattress in Medium Firm from $419 (Save $180 to $213.41). Macy’s M began its Black Friday sales immediately after Halloween.

ETFs to Tap

All these attractive offers would boost retail sales and lead to a surge in stock prices in the days to follow. While an individual stock is certainly a great option to tap the Black Friday deals in the investment world, a basket approach through ETFs is diversified and more cost effective at lower risk. Below we have highlighted retail ETFs that investors should stock up this weekend.

Amplify Online Retail ETF IBUY

This ETF has attracted $1.1 billion to its asset base and offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. The fund is home to 58 stocks and charges 65 bps in annual fees (read: Online Retail ETF Hits a New 52-Week High).

ProShares Online Retail ETF ONLN

This ETF focuses on global retailers that derive significant revenues from online sales. It tracks the ProShares Online Retail Index, holding 26 stocks in its basket. ONLN has accumulated $743.9 million in its asset base and charges 58 bps in annual fees.

ProShares Long Online/Short Stores ETF CLIX

This fund seeks to benefit from both outperforming online and underperforming physical retailers through the long/short strategy. It combines the 100% long position in retailers that primarily sell online or through other non-store channels with a 50% short position in those that rely principally on physical stores by tracking the performance of the ProShares Long Online/Short Stores Index. With long positions in 26 stocks and short positions in 45 stocks, the ETF has accumulated $247.2 million in its asset base and has 0.65% in expense ratio (read: ETF Areas to Gain From the Holiday Shopping Season).

SPDR S&P Retail ETF XRT

With AUM of $606.1 million, this product tracks the retail segment of the broader stock market and follows the S&P Retail Select Industry Index, holding 84 securities in its basket. The fund charges 35 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

VanEck Vectors Retail ETF RTH

This fund provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index. It has amassed $190.1 million in its asset base and charges 35 bps in annual fees. RTH has a Zacks ETF Rank #3 with a Medium risk outlook.

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Target Corporation (TGT): Free Stock Analysis Report
 
The Home Depot, Inc. (HD): Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
 
Walmart Inc. (WMT): Free Stock Analysis Report
 
Best Buy Co., Inc. (BBY): Free Stock Analysis Report
 
Macys, Inc. (M): Free Stock Analysis Report
 
SPDR S&P Retail ETF (XRT): ETF Research Reports
 
VanEck Vectors Retail ETF (RTH): ETF Research Reports
 
Amplify Online Retail ETF (IBUY): ETF Research Reports
 
ProShares Long OnlineShort Stores ETF (CLIX): ETF Research Reports
 
ProShares Online Retail ETF (ONLN): ETF Research Reports
 
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