The VanEck Retail ETF ( NASDAQ: RTH ) dipped at the beginning of Wednesday’s trading session as it is the largest holder out of any exchange traded fund that has a position in Target ( NYSE: TGT ), which plummeted after a weak earnings report.
TGT dropped 14.7% to start Wednesday and is held by 266 different ETFs, but RTH has the most significant stake in the stock with a 4.33% weighting, making TGT RTH’s seventh biggest portfolio position.
RTH which is -1% is not the only retail fund that is in the red, other ETFs that have sizable weightings in Target have also declined. Two other funds include the iShares Evolved U.S. Discretionary Spending ETF ( BATS: IEDI ) which has a 2.84% position in TGT and the popular Consumer Discretionary Select Sector SPDR Fund ( NYSEARCA: XLY ) with a 2.38% position in TGT.
Early on and IEDI was -1.1% and XLY was - 1.8% .
Target has dropped as the company reported Q3 Non-GAAP EPS of $1.54, which missed estimates by $0.64.
Bigger picture RTH, IEDI and XLY are not just lower on Wednesday, but they are down over the course of the year. Year-to-date price action: TGT -34.4% , RTH -14.5% , IEDI -20.8% , and XLY -32.1% .
In other financial news, major averages opened trading on Wednesday lower as a stronger than expected retail sales report came in.
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Retail ETFs slide as shares of Target plumet