Traders Embrace This Retail ETF

Last year, traditional retailers were being left for dead. While myriad issues, not the least of which is the competitive threat from e-commerce, still linger for brick-and-mortar retailers, price action says 2018 is marking a resurgence for the group.

On Monday, one of the three exchange traded funds (ETFs) hitting all-time highs was a retail fund and the S&P Retail Select Industry Index is within striking distance of 52-week highs.

What Happened

The fund gave back some of those gains Monday, but remains one of Direxion's best-performing leveraged bullish ETFs on a month-to-date basis.

Why It's Important

Data suggest traders have recently been displaying some enthusiasm for the triple-leveraged RETL. Volume in RETL has been higher than normal over the past several days and over the past month, traders have been allocation an average of nearly $148,000 per day to the fund, according to issuer data.

RETL's underlying index devotes about 59 percent of its weight to specialty retailers while Internet and multi-line retailers combine for 29 percent.

What's Next

While second-quarter earnings season is winding down, RETL could be a valid earnings this week as several marquee members of the S&P Retail Select Industry Index step into the earnings confessional. That index is up 10.10 percent since the tart of the third quarter.

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