As the holiday season shifts into high gear, retail investors find a new cause for celebration. This year may prove one of the most lucrative on record for the sector, with the National Retail Federation forecasting that U.S. holiday sales will range from $1.01 trillion to $1.02 trillion. The mix of resilient consumer demand, early promotions, and a now-cooling inflation backdrop brings up optimism for another leg higher in retail-focused ETFs.
Retail and consumer ETFs, bolstered by strong e-commerce growth and middle-income consumer spending, have thus far had a decent run in 2025 even as markets continue to feel the uncertainty of previous months. With Black Friday and Cyber Monday just a few weeks away, ETF investors are showing an increase in funds that combine the scale of big-box retailers like Walmart and Costco with the digital heft of Amazon.com Inc (NASDAQ:AMZN) and Shopify Inc (NASDAQ:SHOP).
