RTH Profile
The VanEck Retail ETF focuses on investing in companies that derive a significant portion of their revenue from retail activities. The fund adheres to a policy of allocating at least 80% of its total assets to securities that are part of its benchmark index. This index includes a wide range of retail-related companies, covering sectors such as retail distribution, wholesalers, and online, direct mail, and TV retailers. It also encompasses multi-line retailers, specialty retailers, and food and staples retailers, ensuring a broad representation of the retail industry.
To qualify for inclusion in the index, companies must generate a minimum of 50% of their revenue from retail operations. This criterion ensures that the ETF is composed of firms that are substantially engaged in retail activities, providing investors with targeted exposure to this sector. The index's comprehensive approach covers diverse retail formats, reflecting the various ways consumers interact with retail businesses, from traditional brick-and-mortar stores to modern e-commerce platforms.
The fund's investment strategy is designed to capture the performance of the retail sector by focusing on companies that play a significant role in retail distribution and sales. By investing primarily in these companies, the ETF seeks to benefit from trends and dynamics within the retail industry, including shifts in consumer behavior and advancements in retail technology. This targeted approach allows investors to gain insight into the sector's growth and challenges.
As a non-diversified fund, the VanEck Retail ETF is concentrated in the retail sector, potentially leading to higher volatility compared to more diversified investment options. However, this focus can offer enhanced exposure to retail industry trends and opportunities. Investors looking to capitalize on the performance of retail companies and gain insights into retail market dynamics may find the ETF a valuable addition to their portfolio.
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