An ETF To Play A Rebound In High-End Consumer Spending (ROB)
If you're of the mind that affluent consumers will start spending again, and with the holiday shopping season upon us, that might be a good bet to make, the ETF Professor has an ETF you might be interested in.
The Claymore/Robb Report Global Luxury ETF (AMEX: ROB) counts many luxury retailers among its top holdings, including Coach (NYSE: COH), Luxottica (NYSE: LUX), Polo Ralph Lauren (NYSE: RL), Tiffany (NYSE: TIF) and Wynn Resorts (Nasdaq: WYNN).
ROB has been battered over the past couple of years as even the wealthy have reigned in discretionary spending, but ROB is up close to 60% year-to-date. Impressive, but that lags the performance of Coach and Tiffany.
ROB's geographic exposure is pretty diverse, with France being the most represented country at almost 27% of total holdings. The U.S. accounts for 25.5% and Germany 14%.
The Professor warns you that ROB is thinly traded, but if you're willing to lay a bet on increased discretionary spending on fancy goods, then ROB is the way to go.
