ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Portfolio Strategies Channel
  2. Exposure to Rebounding Consumer Discretionary With RCD
Portfolio Strategies Channel
Share

Exposure to Rebounding Consumer Discretionary With RCD

Elle Caruso FitzgeraldMay 27, 2022
2022-05-27

Consumer discretionary remains the top-performing U.S. equity sector as of Friday morning. 

Shares of Ulta Beauty surged more than 6% after hours on Thursday as the beauty retailer’s quarterly report beat Wall Street estimates on the top and bottom lines, CNBC reported. The stock is up over 11% as of mid-morning Friday. 

Ulta Beauty (ULTA) posted adjusted first quarter earnings of $6.30 per share on revenue of $2.346 billion. Analysts had expected a profit of $4.46 per share on revenue of $2.122 billion, according to Refinitiv. The company also issued better-than-expected forward guidance for the full year.

Shares of Dollar Tree (DLTR) and Dollar General (DG) surged on Thursday, lifting retail and consumer sector-related ETFs after the discount variety store chain revealed better-than-expected profits, VettaFi reported. 

Dollar General’s earnings beat Wall Street’s muted expectations, with sales more or less flat for the quarter that ended April year-over-year, compared to analyst expectations of a 1.2% decline, the Wall Street Journal reported. Dollar Tree saw same-store sales growth of 4.4%, and net profit also climbed 43.2%, mostly due to the new price points at the Dollar Tree chain.

Dollar Tree-owned Family Dollar saw comparable-store sales of discretionary items decline 14.7%, but its sales of consumables increased 1.2%. 

A fund to consider to gain exposure to the rebounding consumer discretionary sector is the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RCD B+), which offers meaningful exposure to Dollar Tree, Dollar General, and Ulta Beauty, among many other names. 

This ETF offers exposure to the consumer discretionary sector of the domestic economy, making it one option available to investors implementing sector rotation strategies or looking to tilt exposure towards a high beta industry, according to VettaFi. 

RCD is linked to an equal-weighted index, meaning that component companies receive approximately equal allocations. That results in exposure that is considerably more balanced than other funds available to investors, according to VettaFi.

For more news, information, and strategy, visit our Portfolio Strategies Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X