Profiting from Christmas might feel like a very Grinch-like thing to do, but if retail stores and Christmas tree farms can do it, so can the savvy investor. As such, here are some ETFs that might be affected by the habits of consumers during the holiday season.
This is self-explanatory. Christmas is the biggest season of the year for retailers, and the last two months of the year can be make or break. As such, retail XRT) is the retail ETF traded at the highest volume, but Market Vectors Retail ETF (RTH) is also popular.may be what investors are in the market for, hoping to speculate on the strength of sales in December. The SPDR S&P Retail (
The holiday prompts all sorts of consumption, and whether it be a standing rib roast or a trip to the Chinese restaurant, the cold weather and warm feelings tend to make people eat more. For investors wishing to speculate on food and beverage consumption, the PowerShares Dynamic Food & Beverage Profile (PBJ) is available.
Hanging Christmas lights is a tradition for many families, and some take a positively ridiculous approach to this. With all those extra lights going all night long, it’s no doubt going to increase the total wattage going out. What’s this mean? Utility ETFs, clearly. The Utilities Select Sector SPDR Fund (XLU) is by far the highest volume utilites ETF traded on the market, but the First Trust Utilities AlphaDEX® Fund (FXU) is also a solid possibility.
Traveling home to see the family is a rite of passage for many Americans, fighting busy airports and nightmarish waits. Or, if you’re lucky, perhaps it’s off to sunshine and mojitos in the Bahamas. Either way, the holiday traveling is likely to benefit airlines at least in the short term. For those wishing to speculate on the airline industry, the Guggenheim Arca Airline ETF (FAA) could be a way to go.
Nothing says Christmas like a warm, crackling fire. Preferably in a fire place, but one does what they have to. For many if not most Americans, the holidays can be the only time of the year when the fireplace gets any use. That’s got to mean higher lumber sales, right? Well, if one wishes to bet on it, both the Guggenheim Timber ETF (CUT) and the iShare S&P Global Timber & Forestry Index Fund (WOOD) are available.