ProShares Online Retail ETF

ONLN

Market cap $63.5M

XRT and other retail ETFs come into focus after flat December sales and weak real spending cast a shadow over the 2025 holiday season.

The U.S. economy began 2026 with a display of unexpected resilience in the labor market, even as long-term data revisions painted a more modest picture of 2025 growth. While consumer spending showed signs of exhaustion during the holiday season, inflation continued its downward trajectory, reaching levels not seen in several years.

The Advance Retail Sales Report from the Census Bureau showed consumer spending was unexpectedly flat in December. Headline sales were unchanged, down from November's 0.6% reading and below the projected 0.4% growth.

As the second half of January begins, the U.S. economy presents a picture of cooling inflation and resilient consumer activity. While consumer price growth hit a six-month low in December and retail sales rebounded to start the holiday season, investor sentiment has reached a fever pitch.

November's Advance Retail Sales Report from the Census Bureau showed a pickup in consumer spending. Headline sales were up 0.6%, up from -0.1% pullback in October and above the projected 0.5% growth.

Use of generative AI chat services for holiday shopping rose nearly 700% from a year earlier.

Retail-focused ETFs could benefit as a record 158.9 million shoppers hit stores and online on Super Saturday, boosting late-season sales momentum.

October's Advance Retail Sales Report from the Census Bureau revealed a slowdown in consumer spending. Headline sales were flat, missing the projected 0.1% monthly growth.

Record holiday spending masks consumer strain, but strong retail earnings lift interest in ETFs XRT, RTH, IBUY and ONLN.

Heading into the holiday season, it's not clear how broad economic and consumer concerns will impact spending. However, if Black Friday 2025 is any indication, online retailers are likely to do well.