This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 ETFs for a Consumer Rebound

Stocks in this article: XRT FDN PEJ IYK GOOG NFLX

NEW YORK ( TheStreet) - On Tuesday, investors were greeted with promising news regarding consumer borrowing. After two years of paring back in response to the global economic upheaval, increasing confidence appears to be spurring borrowing once again.

According to Businessweek, consumer borrowing jumped 3% in December, highlighted by a 3.5% uptick in credit card usage, the first increase in 27 months.

For retail consumers, the economic healing process has been a slow, arduous process as unemployment and market turmoil has weighed heavily on sentiment and confidence.

However, in the opening weeks of 2011, we have seen evidence that a recovery is in the works for this crucially essential economic component. As we head further into 2011, there will likely be headwinds in store for consumers. However, it may be a good idea to pick up to a consumer-related ETF in order to track this ongoing resurgence.

There are a number of options available for investors looking to target the consumer.


This retail-focused fund is a promising option for investors looking to capture companies that will benefit as increasingly confident shoppers head to malls and shopping centers.

Comprised of firms hailing from across the retail spectrum, this fund's index provides exposure to a collection of discounters, luxury players and teen retailers. Additionally, the fund boasts exposure to the automotive industry and other miscellaneous corners of the retail industry.

XRT's top holding include Jo-Ann Stores (JAS), Sears (SHLD), Autonation (AN), Office Depot (ODP), and Ulta Salon (ULTA).

First Trust Dow Jones Internet Index Fund (FDN)

The Internet is becoming increasingly engrained into our day to day lives, leading more and more consumers to turn to e-commerce in order to get their retail fixes. During the 2010 holiday season, online retailers scored a landmark victory, with Cyber Monday sales topping $1 billion and outpacing Black Friday's numbers.

FDN combines exposure to some of the most attractive names hailing from the internet industry including top online consumer focused firms such as Google (GOOG), Amazon (AMZN), eBay (EBAY) and Netflix (NFLX). These firms will see strength as desks and sofas become the go-to destinations for shopping experiences.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs