A popular ETF for looking at the retail sector is the SPDR S&P Retail
The XRT product is an investors favorite for a few reasons. The first is that it is very liquid. The second is that the ETF isn't heavily weighted to one individual name. The ETF tends to have holdings that are no larger than 1.8%. This means, of course that one bad day on an individual retail stock cannot really effect the ETF.
Now the XRT has really taken off since the election. Currently it is up over 15% since election night, and like the markets, it too has experienced these gains in a very swift and vertical manner. The interesting part is that this recent move has taken it above a 14 month range. Why? Well one reason is the explosive performance of some of the holdings in the ETF.
Many of the names that have performed well are not the types of "high-flying" stocks that usually grab the medias attention. One example is Office Depot
So what does this tell you? To jump in and try and ride the wave? Well, for most investors when they look at the timing of the rally they are salivating at the chance to buy a pullback. Now, the only question is will the retail sector pullback before the end of the year, or early January to give everyone a chance to participate?