Latest news with #SPDRS
Yahoo
5 days ago
- Business
- Yahoo
Consumer Confidence Surges in May: ETFs to Gain
Consumer sentiment got a strong boost in May, thanks to optimism over easing trade tensions between the United States and China. According to a survey released on May 27, 2025 by The Conference Board, the Consumer Confidence Index jumped to 98.0, marking a 12.3-point increase from April. This figure also far exceeded the Dow Jones consensus estimate of 86.0, as quoted on CNBC. The primary driver of the surge was the progress in U.S.-China trade negotiations. President Donald Trump's decision on May 12 to halt severe tariffs appears to have reassured consumers. The May uptick follows five consecutive months of declining consumer confidence, a trend fueled by the escalating trade war initiated by President Trump. China was a key focus of U.S. tariff actions until both sides reached a temporary truce in early May. Other components of the survey also showed improvement. The Present Situation Index climbed to 135.9, up 4.8 points. The Expectations Index surged to 72.8, an increase of 17.4 points. Investor sentiment improved as well, with 44% now expecting stock prices to rise over the next 12 months, compared to 37.6% in April. Perceptions of the labor market also improved: about 19.2% of respondents expect more job availability in the next six months (up from 13.9%). Those expecting fewer jobs fell to 26.6% (from 32.4%). A slightly increased 31.8% said jobs are 'plentiful.' Against this backdrop, both consumer discretionary and staples-based exchange-traded funds (ETFs) should benefit. These ETFs include Consumer Discretionary Select Sector SPDR Fund XLY, Vanguard Consumer Discretionary ETF VCR, Fidelity MSCI Consumer Discretionary Index ETF FDIS, SPDR S&P Retail ETF XRT, Consumer Staples Select Sector SPDR Fund XLP, iShares U.S. Consumer Discretionary ETF IYC and iShares U.S. Consumer Staples ETF IYK. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Consumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports SPDR S&P Retail ETF (XRT): ETF Research Reports Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports iShares U.S. Consumer Staples ETF (IYK): ETF Research Reports Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports iShares U.S. Consumer Discretionary ETF (IYC): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
19-05-2025
- Business
- Yahoo
Retail ETFs Set to Gain on Dick's $2.4B Foot Locker Buyout
Dick's Sporting Goods DKS, the nation's leading sporting goods retailer, is set to acquire struggling shoe chain Foot Locker FL for $2.4 billion. The acquisition will be funded through a mix of existing cash and newly raised Dick's–Foot Locker acquisition could mark a crucial shift in the global athletic retail landscape and could benefit retail ETFs like SPDR S&P Retail ETF XRT, VanEck Vectors Retail ETF RTH, Amplify Online Retail ETF IBUY and ProShares Online Retail ETF ONLN. Under the terms of the deal, Foot Locker shareholders will receive either $24 per share in cash or 0.1168 shares of DKS stock per Foot Locker share. The combined company will be a dominant player in the global athletic retail space and capture a greater share of the highly lucrative Nike NKE wholesale market. The acquisition will provide Dick's access to international markets via Foot Locker's global footprint of 2,400 stores across 20 countries. It will diversify Dick's customer base, tapping into a younger, urban demographic core sneaker transaction, expected to be closed in the second half of 2025, is pending approval from Foot Locker shareholders. It is expected to be accretive to earnings in the first full fiscal year following the close and is estimated to generate annual cost synergies of $100–$125 deal follows a sharp decline in Foot Locker's share price this year. The multi-brand retailer, which sells footwear from Nike, Adidas, Vans, and others, has been under pressure along with other retailers after President Donald Trump announced sweeping tariffs last month. Although some tariffs have been paused and trade negotiations are ongoing, Foot Locker's stock has lost 40% year to date (read: 3 ETF Areas to Win Amid Slowing Retail Sales in April).The company had already projected lower sales for the year, citing the impact of tariffs and recent pricing changes by Nike aimed at boosting its direct sales. If completed, the deal would mark the largest acquisition for Dick's Sporting Goods. Let's delve into each ETF below: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 76 well-diversified stocks in its basket, with a double-digit allocation each in apparel retail, specialty retail, automotive retail, and broadline retail. SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $479.2 million and an average trading volume of 6 million shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Oil Slumps to Below $60: ETFs to Gain).VanEck Vectors Retail ETF (RTH)VanEck Vectors Retail ETF provides exposure to the 26 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. VanEck Vectors Retail ETF has amassed $244.9 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 5,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 with a Medium risk Online Retail ETF (IBUY) Amplify Online Retail ETF offers global exposure to publicly traded companies with significant revenues from the online retail business, traditional online retail, online travel, online marketplace and omni-channel retail by tracking the EQM Online Retail Index. IBUY holds 83 stocks in its basket, with the largest allocation going to online marketplace at 40.3% and online retail at 36.1%. Amplify Online Retail ETF has attracted $148.1 million in its asset base and charges 65 bps in annual fees. IBUY trades in an average daily volume of 13,000 shares. ProShares Online Retail ETF (ONLN)ProShares Online Retail ETF offers exposure to companies that principally sell online or through other non-store channels and then zeroes in on companies reshaping the retail space. It tracks the ProShares Online Retail Index, holding 19 stocks in its basket. American firms make up 75.7% of the portfolio, while Chinese firms account for an 8.1% share. ProShares Online Retail ETF has accumulated $75.6 million in its asset base and charges 58 bps in annual fees. ONLN trades in an average daily volume of 12,000 shares. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE) : Free Stock Analysis Report Foot Locker, Inc. (FL) : Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS) : 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 ProShares Online Retail ETF (ONLN): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
25-04-2025
- Business
- Business Insider
SPY ETF News, 4/25/2025
How is SPY stock faring? The SPDR S&P 500 ETF Trust is up 4.98% in the past 5 days and about 7.70% over the past year. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. According to TipRanks' unique ETF analyst consensus, determined based on a weighted average of its holdings' analyst ratings, SPY is a Moderate Buy. The Street's average price target of $665.59 implies an upside of more than 26.44%. Currently, SPY's five holdings with the highest upside potential are Western Digital (WDC), Las Micron Technology (MU), First Solar (FSLR), Moderna (MRNA), and Deckers Outdoor (DECK). (PLTR), Altria (MO), Ford (F), Allegion (ALLE), and Huntington Ingalls (HII). Power up your ETF investing with TipRanks. Discover the Top Equity ETFs with High Upside Potential, carefully curated based on TipRanks' analysis.
Yahoo
09-04-2025
- Business
- Yahoo
Berkshire Hathaway Inc. (NYSE:BRK-B): Among the Best Insurance Stocks to Buy According to Hedge Funds
We recently published a list of the 10 Best Insurance Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Berkshire Hathaway Inc. (NYSE:BRK-B) stands against the other insurance stocks held by hedge funds. The insurance stocks have done better in 2025 despite the losses from wildfires earlier this year. The industry-leading ETFs, SPDR S&P Insurance ETF and iShares US Insurance ETF, have surged nearly 6% and 8.60% year-to-date, respectively. At the same time, the S&P 500 index, which tracks large-cap stocks, has plunged over 8%. Read More: 10 Most Undervalued Insurance Stocks to Buy Now Investors are holding back as the market feels uneasy due to the tariff policies. The Trump Administration has addressed to the market that it plans to reposition the U.S. economy as a leader. The government has imposed heavy tariffs to drive companies to invest in the domestic market. The U.S. Treasury Secretary Scott Bessent acknowledged that these policies may create short-term disruption, even if they turn out to be effective eventually. Apart from the market-changing conditions in the U.S., there are geopolitical conflicts in Europe and the Middle East. Once again, the economic data is warning of a potential recession, and U.S. consumers are financially quitting. The changing economic landspace in the U.S. could have significant implications for insurers, leading to potential supply chain changes and shifts in overall profitability. According to the Underwriting Director at Lloyd's Market Association, Elizabeth Wooliston, the effects of tariffs on insurers will differ as increased uncertainty and market volatility could raise business risks. 'There is no doubt we are living in unpredictable times, and even looking at a 12-month insurance contract could feel as if we are trying to predict a long way ahead,' Wooliston added. She further said, 'In the U.S., as the end price of goods is likely to rise, the most obvious and immediate concern for insurers will be managing their 'value at risk', with brokers paying close attention to avoid underinsureance for their customers.' Apart from underwriting for profitability, insurers also rely on investing their capital in various financial instruments. If market uncertainty increases in the long term, it can hurt the overall profitability of insurers. However, analysts at Keefe, Bruyette & Woods believe that insurers should be able to overcome the tariff challenges. Industry players will potentially have enough time to request rate increases, which state regulators are likely to approve. The analysts expect the tariffs to mainly impact personal insurance, along with auto damage, commercial property, surety, and marine lines. These segments will potentially be hit harder by tariffs due to increased claim costs. Despite the current market circumstances and losses from wildfire, the insurance industry in the U.S. remains steady. The U.S. has some of the largest insurance companies that drive the overall market. Krista Kennell/ Our Methodology We used a Finviz screener to shortlist insurance companies with a market capitalization of more than $1 billion. We then looked for the insurance stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 10 best insurance stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). No. of Hedge Fund Holders: 131 Berkshire Hathaway Inc. (NYSE:BRK-B) is involved in various business activities, including insurance and reinsurance, utilities and energy, manufacturing, and others. The company allocates the money it makes from its insurance and other operations to its portfolio of stock holdings and securities across multiple industries. Berkshire Hathaway Inc. (NYSE:BRK-B) ended 2024 with a remarkable $334 billion in cash, while the insurance business drove the last quarter's earnings. During Q4 2024, the company's operating profit soared to $14.53 billion, up by 71% from a year ago. Insurance underwriting profit soared by a whopping 302% year-over-year to $3.41 billion. Berkshire's insurance investment income reached $4.09 billion, a rise of 50% year-over-year. On top of that, Warren Buffet's insurance holding firm has an AA credit rating from Standard & Poor's. Overall, BRK-B ranks first among the 10 best insurance stocks to buy now. While we acknowledge the potential of insurance companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BRK-B but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
