Retail Roundup: Online vs. Brick-and-Mortar

December 15, 2017
Updated 5mo ago

The holiday season is in full swing, and all eyes are on the retail industry. John Gagliardi, Regional Brokerage Consultant at Fidelity, stopped by to give us a retail roundup.

Gagliardi points out that internet retail has led the way, but specialty retail has shown signs of life. He analyzed the performance of the XRT ETF, which has a variety of online and brick-and-mortar retailers including Amazon and Macy's. With a price to earnings ratio of just 11 for Macy's, Gagliardi says this could represent a value opportunity for investors.

It's important to remember that most sectors and industry groups participate in a bull market, he says. Gagliardi shows us the performance of the IBUY ETF, focused on online retailers only, and highlights that it performed much better than XRT.