E.l.f. Beauty Inc’s (NYSE:ELF) stock collapse over the past two days didn’t just smudge its own valuation, it also cast a shadow over several consumer and retail ETFs exposed to high-multiple, tariff-sensitive names. On Wednesday, ELF crashed 29%, and Thursday is going even worse for the stock, which is down 36% at the time of writing. Funds like the iShares U.S. Consumer Goods ETF (NYSE:IYK), VanEck Retail ETF (NASDAQ:RTH), and SPDR S&P Retail ETF (NYSE:XRT) all hold companies in similar product categories or supply chains, leaving them vulnerable to the same profit pressures now battering E.l.f.
The IYK ETF, which counts Procter & Gamble Co (NYSE:PG) and Estee Lauder Companies Inc (NYSE:EL) among its top holdings, has been a quiet beneficiary of post-pandemic consumer resilience. But with E.l.f. warning that tariffs have slashed its margins and earnings guidance, even defensive consumer names could start to lose their shine. IYK has inched down on Thursday.
