The SPDR S&P Retail ETF (XRT) fell by 1.1% on November 4, 2015. This was the case with most of the consumer discretionary ETFs, including the Vanguard Consumer Discretionary ETF (VCR) and the Fidelity MSCI Consumer Discretionary ETF (FDIS). The two ETFs slipped by 0.7% and 0.6%, respectively. The XRT ETF has now fallen by almost 6% in the last three months due to some weak macroeconomic indicators and disappointing earnings in the last quarter of 2015. Let’s have a look at how some of the consumer discretionary ETFs of the United States performed on November 4.
As can be seen from the chart above, the SPDR S&P Retail ETF (XRT) had the highest fall and also the highest volatility in the last 30 days compared to the other consumer discretionary ETFs. In the above sample of consumer discretionary ETFs, the Consumer Discretionary Select SPDR ETF (XLY) has had better performance in the last three months, with 2.5% in returns and the least volatility among the group. The XLY ETF is also trading above its 100-day and 20-day moving averages.
Reason for fall
The major reason for a fall in the ETFs on Wednesday was disappointing earnings released on the day. The most prominent of them all were earnings for Whole Foods Market (WFM) and Groupon (GRPN), as the stocks fell by 1.6% and 26.3%, respectively. Also, Walgreens Boots Alliance (WBA) slipped 0.85%, and DSW (DSW) fell by 7.8%.
In the next article, we’ll have a look at the performance of consumer staples ETFs.