This week brings an avalanche of earnings reports from the retail sector.
Those reports will affect myriad exchange traded funds, including the widely followed SPDR S&P Retail ETF (NYSE:XRT) and some well-known consumer discretionary funds. However, few ETFs will be affected by the retail earnings deluge the way the Market Vectors Retail ETF (NYSE:RTH) will be.
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RTH is neither new nor obscure. The ETF has existed in its current form for nearly four years and has $224.7 million in assets under management. Notably, RTH was the top-performing consumer discretionary ETF in 2014. This year, RTH is higher by 9.2 percent, a performance that easily thumps that of the less than one percent gained by XRT. Plus, RTH has outpaced the Vanguard Consumer Discretionary ETF (NYSE:VCR) by 120 basis points year-to-date.
RTH is home to 26 stocks, one of which is Amazon.com, Inc. (NASDAQ:AMZN). Amazon, which has already reported earnings, is RTH's largest holding at a weight of almost 12.7 percent. There are still plenty of big-name holdings on RTH's roster reporting this week.
Related Link: Wal-Mart, HP Highlight The Week In Earnings
On Tuesday, Dow components Home Depot Inc(NYSE:HD) and Wal-Mart Stores, Inc. (NYSE:WMT) report. Those stocks combine for almost 17 percent of RTH's weight and are the ETF's second- and third-largest holdings, respectively. TJX Companies Inc(NYSE:TJX), RTH's eighth-largest holding with a weight of 4.7 percent, also reports on Tuesday.
On Wednesday, Home Depot rival Lowe's Companies, Inc. (NYSE:LOW) reports. The second-largest home improvement retailer is RTH's seventh-largest holding at a weight of five percent, accordingto Market Vectors data. Target Corporation(NYSE:TGT), RTH's tenth-largest holding with a weight of 4.3 percent, also reports on Wednesday.
Limited Brands Inc. (NYSE:LTD), a stock that occupies a 2.6 percent weight in RTH, also delivers results on Wednesday. On Thursday, Ross Stores Inc. (NASDAQ:ROST) reports. That stock is 2.7 percent of RTH's weight. Gap Inc. (NYSE:GPS) also steps into the earnings confessional on Thursday. That stock is nearly 1.5 percent of RTH's weight.
Add it all up and approximately 37 percent of RTH's weight is delivering earnings this week. On a combined basis, the stocks mentioned here have the potential to move RTH's needle in the week ahead. The ETF resides just 1.6 percent below its recently set all-time high.
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