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Here’s Why Retail Stocks Could Underperform Over the Next Year By StockNews


© Reuters. Here’s Why Retail Stocks Could Underperform Over the Next Year

Retailers have outperformed in 2021 due to a unique mix of factors. There are significant risks for them in 2020, so investors may want to consider profit taking or betting against this sector using the ETF. In 2021, retailers have outperformed due to a unique mix of factors. The best illustration of this dynamic is the ProShares Long Online/Short Stores ETF (CLIX).

CLIX invests in e-commerce companies like Amazon (NASDAQ:), Chewy (NYSE:), and Wayfair (NYSE:), while it shorts the stocks of retailers who derive the bulk of revenues from physical stores.

CLIX was launched in September last year, and it soared through the worst of the pandemic. However, since mid-February, it’s given back these gains and is down 30% from its peak as physical retailers have outperformed.

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