From Nasdaq: 2024-04-28 05:32:00

In the retail sector, individual stocks like Home Depot and Walmart have generated massive returns, but failed retailers like Bed Bath & Beyond and JCPenney wiped out many investors. Consider investing in exchange-traded funds (ETFs) to hedge against such risks.

The VanEck Retail ETF (RTH) tracks the U.S. consumer discretionary sector with 26 holdings, with Amazon as its largest at 21%. Over the last five years, it outperformed competitors and the SPDR S&P 500 ETF.

Despite a higher expense ratio, the VanEck Retail ETF’s performance justifies the cost, outperforming other funds and individual stocks. Passive investors seeking exposure to the retail sector may find this ETF a compelling option.

Before investing in VanEck Retail ETF, consider 10 best stocks identified by Motley Fool Stock Advisor that could deliver strong returns. The service has outperformed the S&P 500 since 2002 and provides guidance on building a successful portfolio. John Mackey, former Whole Foods Market CEO, is on The Motley Fool’s board.



Read more at Nasdaq: Forget Individual Consumer Stocks: Buy This ETF Instead