VanEck Retail ETF Analysis Shows Mixed Performance Trends

In-depth analysis reveals the performance of the VanEck Retail ETF (RTH) amidst mixed market signals. With current challenges in the Consumer Discretionary Retail sector, investors should assess potential impacts on stock prices and investment strategies.

Date: 10-04-2025

AI Rating: 5

The VanEck Retail ETF (RTH) provides a diversified approach for investors seeking exposure to the Consumer Discretionary - Retail segment. This segment is currently underperforming, ranked 9th within the Zacks Industry classification, which places it in the bottom 44% of sectors. The ETF's assets have grown to over $213.79 million, reflecting notable investor interest despite recent underperformance.

Performance Metrics: Year-to-date, RTH has experienced a decline of 6.82%, with a one-year uptick of only 2.51% as of April 9, 2025. The ETF has traded within a 52-week range of $196.07 to $242.36, indicating significant volatility which can concern short-term investors. The reported beta of 0.95 suggests it has lower volatility compared to the broader market, yet the standard deviation of 17.75% indicates that the fluctuations in RTH’s performance have been considerable.

Portfolio Exposure: RTH's principal holdings include major retailers like Amazon.com Inc (AMZN), which accounts for about 18.08% of the portfolio. Other notable holdings such as Walmart Inc (WMT) and Costco Wholesale Corp (COST) collectively contribute to a hefty 72.42% of total assets. Given the current ranking of the Consumer Discretionary Retail sector and the mixed performance of these key players, investments in RTH are likely to yield cautious evaluations from professional investors.

Cost Structure: The ETF charges an annual operating expense ratio of 0.35%, positioning it as one of the more cost-effective options available, which is advantageous for long-term investors. Its trailing dividend yield of 0.83% points towards a moderate return, which, while not especially high, does provide some level of investor income amidst market uncertainty.

In summary, the VanEck Retail ETF offers diversified access to the retail sector but is currently challenged by sector performance issues and a low ranking. The ETF's transparent fee structure and notable holdings may attract certain investors, but cautious perspective is warranted due to the mixed indicators and sector challenges present in today’s market.

Stocks: AMZN WMT COST