RTH & VDC ETFs: Primed for Post-Walmart Q3 Earnings Rally

Walmart's earnings aren't just about retail—they're about to shake up two key ETFs.

RTH: The Retail Rocket

Consumer discretionary's moment to shine as Walmart's numbers reveal holiday shopping trends.

VDC: Consumer Staples Surge

Because even when markets crash, people still need toothpaste and toilet paper—Wall Street's favorite defensive play.

These ETFs could deliver the kind of returns that make traditional stock pickers question their existence—if Walmart's numbers beat expectations. Another case of ETFs doing the heavy lifting while active managers collect fees for underperformance.

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Investors keen to add Walmart to their shopping list could also look at ETFs which have a high weighting in the retail stock.

Let’s take a closer look:

VanEck Retail ETF (RTH)

The RTH ETF zeroes in on the consumer discretionary category, featuring a diverse portfolio of retail giants that are shaping the future of shopping and consumer behavior. These companies are often at the forefront of technological adoption and customer experience enhancement. It seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS US Listed Retail 25 Index.

WMT stock constitutes 9.48% of the ETF’s holdings. Apart from WMT, some of the top holdings in the ETF include Amazon (AMZN) with 20.36%, Costco (COST) with 7.67% and Home Depot (HD) with 6.83%.

Overall, the ETF has $253.85 million assets under management (AUM) and an expense ratio of 0.35%. Year-to-date, the RTH ETF is up 11%.

On TipRanks, RTH has a Strong Buy consensus rating based on 21 Buy and 5 Holds. Its consensus price is $299.15, implying a 22.70% upside.

Vanguard Consumer Staples ETF (VDC)

The VDC ETF tracks the performance of large-cap consumer staples companies, such as food, beverage, household goods, and retail giants. These firms tend to be less volatile and maintain consistent demand, even during economic downturns. WMT stock constitutes 14.26% of the ETF’s holdings.

Apart from WMT, some of the top stocks in the VDC ETF are Costco (COST) with 12.96%, Procter & Gamble (PG) with 11.15% and Coca-Cola (KO) with 8.71%.

Overall, the ETF has $7.19 billion in assets under management. Also, it has an expense ratio of 0.09%. The VDC ETF is up 0.58% so far this year.

Turning to Wall Street, the ETF has a Moderate Buy consensus rating based on 58 Buy, 46 Hold and 2 Sell ratings. Its consensus price target is $243.07, implying a 17.03% upside.

Concluding Thoughts

ETFs provide indirect exposure to WMT, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider RTH and VDC, as these ETFs offer exposure to Walmart stock