Amid mandated social distancing regulations, homeowners made good use of their dwellings by improving them in 2020. As home improvement retail rises, ETF investors can capitalize on all the improvement projects with the VanEck Vectors Retail ETF (RTH).
With its second largest holding in retail chain Home Depot, RTH makes for the perfect indirect play on the improving sub-sector. Its current allocation to Home Depot (as of February 28) is 12%.
“One bright retail spot in 2020, the year COVID-19 hit hard in the U.S., was the home improvement and repair segment which saw product sales spike 8.7% compared to the year prior,” a Retail Customer Experience article duly noted. “Total product sales hit $440 billion, according to research from ComprarAcciones.com. In comparison, during the financial crisis in 2008-2009, the home improvement market saw a three-year decline in product sales, according to a press release on the research findings.”