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5 ETF Deals You Can't Miss on Black Friday

The holiday season kicked off with Thanksgiving Day, and now it’s time for Black Friday — one of the busiest shopping days of the year. Retailers are splurging on early promotions and discounts, and free shipping on online purchases to lure customers.

The attractive offers would boost retail sales and lead to a surge in stock prices in the days to follow. While an individual stock is 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. Investors should stock up ETFs like Amplify Online Retail ETF IBUY, SPDR S&P Retail ETF XRT, VanEck Vectors Retail ETF RTH, ProShares Online Retail ETF ONLN and First Trust Nasdaq Retail ETF FTXD this weekend.

According to the National Retail Federation, about 158.3 million Americans are expected to shop either in-store or online during the Thanksgiving weekend (spanning five days from Thanksgiving Day through Cyber Monday), up 156.6 million from the last year but still below the 165.3 million in pre-pandemic 2019. Of them, 30.6 million plan to shop on Thanksgiving Day, 108 million on Black Friday, 58.1 million on Small Business Saturday, 31.2 million on Sunday and 62.8 million on Cyber Monday.

Among those shopping on Thanksgiving Day, 65% are likely to shop in stores, up from 50% last year, when worries about COVID-19 were still keeping many people at home. On Black Friday, 64% are likely to shop in stores, up from 51% last year (read: Retail ETFs to Gain on Q3 Earnings Wave).

Hot Retailers

The Black Friday sales bonanza is in full swing as a number of retailers had already perked up their deals several weeks before to lure customers. We have highlighted some of the best deals from the retailers below:

Amazon AMZN is releasing new deals every hour starting the week of Black Friday for the biggest shopping day of the year. The best deals consist of discounts on Amazon’s own products like MacBook Air M1 2020, 12.9-inch iPad Pro 2021 (256GB), TV 4K (32GB) and Apple Watch Series 6. Amazon is also offering discounts on wireless headphones from Sony, Bose, JBL, etc.

Wal-Mart WMT, the world's largest retailer, kicked off its Black Friday deals on Nov 22 but will start offering huge discounts on thousands of items with in-store deals on Nov 26. Some of the best deals include Apple (AAPL) AirPods Pro with MagSafe Charging Case for an all-time low of $159 (save 36%), Bose QuietComfort 35 II for just $179 (save 40%), Instant Pot 8 Quart 7-in-1 Multi-Cooker for $59 (save 41%), and Shark ION Robot Vacuum RV750 for $143 (save 52%).

Target's TGT Black Friday sale has started in stores and online on Nov 21 and will end on Nov 27. Prices have been slashed on everything from 4K TVs to kitchen gadgets, phones and smartwatches, including one of the all-time lowest prices on the Apple Watch SE. The hottest brands and products include Apple watches and AirPods, Nintendo Switch and Oculus Quest 2, KitchenAid mixers and Dyson vacuums.

Best Buy BBY is showcasing offerings from Apple AirPods to a cordless vacuum cleaner. The company started additional promotions on Nov 19, a week before the traditional Black Friday.

ETFs to Shop

Below we have highlighted the ETFs in detail.

Amplify Online Retail ETF (IBUY)

Amplify Online Retail ETF offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. IBUY holds 80 stocks in its basket with none accounting for more than 2.6% of assets. Amplify Online Retail ETF has the largest allocation in traditional retail at 53.6% followed by 36.6% in the marketplace.

Amplify Online Retail ETF has attracted $798.1 million in its asset base and charges 65 bps in annual fees. IBUY trades in an average daily volume of 62,000 shares.

SPDR S&P Retail ETF (XRT)

SPDR S&P Retail ETF tracks the S&P Retail Select Industry Index, which provides exposure across large-, mid-and small-cap stocks. It holds a well-diversified 107 stocks in its basket with none making up for more than 1.84% share. Additionally, SPDR S&P Retail ETF is well spread across various industries with a double-digit allocation each in apparel retail, Internet & direct marketing retail, automotive retail and specialty stores (read: 5 ETFs That Deserve Special Thanks in 2021).

SPDR S&P Retail ETF is the largest and most popular in the retail space with AUM of $1.1 billion and an average trading volume of 3 million shares. XRT charges 35 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.

VanEck Vectors Retail ETF (RTH)

VanEck Vectors Retail ETF provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesale, online, direct mail and TV retailers, multi-line retailers, specialty retailers, and food and other staples retailers. VanEck Vectors Retail ETF is highly concentrated on the top two firms with a double-digit exposure each while the other firms hold no more than 5.6% share.

VanEck Vectors Retail ETF has amassed $261.6 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 20,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: 5 ETFs to Buy This Holiday Season for Gift of Good Returns).

ProShares Online Retail ETF (ONLN)

ProShares Online Retail ETF offers exposure to the company that principally sells online or through other non-store channels, and then zeroing in on the companies reshaping the retail space. It tracks the ProShares Online Retail Index, holding 40 stocks in its basket. ONLN is highly concentrated on the top two firms, while the other firms hold no more than 4.2% of assets. American firms make up three-fourth of the portfolio, while Chinese firms account for 17.4% share.

ProShares Online Retail ETF has accumulated $765.6 million in its asset base and charges 58 bps in annual fees. ONLN trades in an average daily volume of 73,000 shares.

First Trust Nasdaq Retail ETF (FTXD)

First Trust Nasdaq Retail ETF follows the Nasdaq US Smart Retail Index. It holds 51 stocks in its basket, each accounting for no more than 7.3% of assets. First Trust Nasdaq Retail ETF is slightly skewed toward specialty retail at 39.1%, while diversified retailers round off the next spot with double-digit exposure.

First Trust Nasdaq Retail ETF has accumulated $24.9 million in its asset base and has an expense ratio of 0.60%. It trades in an average daily volume of 6,000 shares. First Trust Nasdaq Retail ETF carries a Zacks ETF Rank #3 (Hold).


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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
 
Target Corporation (TGT): Free Stock Analysis Report
 
Walmart Inc. (WMT): Free Stock Analysis Report
 
Best Buy Co., Inc. (BBY): Free Stock Analysis Report
 
SPDR S&P Retail ETF (XRT): ETF Research Reports
 
VanEck Retail ETF (RTH): ETF Research Reports
 
Amplify Online Retail ETF (IBUY): ETF Research Reports
 
First Trust NASDAQ Retail ETF (FTXD): ETF Research Reports
 
ProShares Online Retail ETF (ONLN): ETF Research Reports
 
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