The so-called “retail apocalypse” has stirred huge changes in the consumer space over the past decade. Unfortunately, the worst was still to come for traditional retailers who had survived the 2010s. The COVID-19 pandemic has ravaged retailers and forced businesses to adjust to the burgeoning online shopping space. Today, I want to look at an ETF that offers exposure to some of the top consumer discretionary stocks. This can provide some stability in your portfolio for the long term. These stocks have been strong performers in the face of the pandemic.
The BMO Global Consumer Discretionary ETF (TSX:DISC) is designed to replicate, to the extent possible, the performance of the FTSE Developed ex Korea Consumer Discretionary Capped 100% Hedged to CAD Index. Shares of this ETF have climbed 11% in the year-to-date period. It is up 25% year over year.
Some of the top holdings in this ETF include Amazon.com, which has expanded its gigantic retail reach over the course of the COVID-19 pandemic. Other top holdings include Tesla (NASDAQ:TSLA), Home Depot (NYSE:JD), Walt Disney (NYSE:DIS), and Netflix (NASDAQ:NFLX). Streaming stocks also posted transformative growth during the crisis. Disney was able to make up for lost revenue from shuttered theatres with the success of its streaming platform Disney Plus.
This is an ETF worth targeting as rising COVID-19 cases threaten to disrupt a fragile world economy. These top stocks have remained robust in the face of the pandemic.
