When investors think of a multinational e-commerce company, Amazon.com, Inc. (AMZN) is the name that generally first comes to mind. The company, which initially opened as an online bookstore, has been at the forefront of online commerce for the better part of two decades. However, traditional 澳洲幸运5官方开奖结果体彩网:brick-and-mortar discount retailer Walmart Inc. (WMT) has been keeping pace online as well—澳洲幸运5官方开奖结果体彩网:maybe as Amazon's biggest threat. The retailer turned heads when it reported that its total online sales🥃 rose by 84% in the two years since the pandemic began, according to the company's annual filing.
To increase its online sales, Walmart has improved its website design, pushed into international markets by purchasing Flipkart, India's largest e-commerce site, and enhanced the omnichannel experience with Walmart+, which includes unlimited shipping and delivery, exclusive discounts, and Paramount+ streaming service.
Walmart's rising online sales show that the company's investment in bolstering its online presence to compete with Amazon is paying dividends. Investors who want exposure to Walmart may consider adding one of these three 澳洲幸运5官方开奖结果体彩网:exchange-traded funds (ETFs) to their portfolio.
Key Takeaways
- Walmart has increased its internet presence, becoming one of Amazon's leading competitors for online sales.
- As one of the nation's largest retailers, many retail ETFs and mutual funds have stakes in WMT stock.
- The VanEck Retail ETF, Fidelity MSCI Consumer Staples ETF, and Vanguard Consumer Staples ETF all have significant positions in Walmart.
VanEck Retail ETF (RTH)
The VanEck Retail ETF (RTH) seeks to track to track the performance of the MVIS US Listed Retail 25 Index. To achieve this, the fund, created in 2011, invests the majority of its assets in securities that make up the underlying index. This includes the 25 largest U.S-listed stocks that generate at least 50% of their revenue from retail.Although Amazon commands the lion's share of exposure at 21.82%, Walmart accounts for 8.15% of the fund's portfolio.
The VanEck Vectors Retail ETF has a 30-day SEC yield of 0.90% and has 澳洲幸运5官方开奖结果体彩网:assets under management (AUM) of $203.49 million. The fund’s 澳洲幸运5官方开奖结果体彩网:expense ratio of 0.35%. As of April 30, 2024, RTH has returned 13.85% over the past five years and 5.48% over the past three years. Lifetime returns, which benefited from robust consumer spending since 2011, returning an optimistic 15.80%.
$734 billion
The total value of all Walmart stock, as of Nov. 26, 2024.
Fidelity MSCI Consumer Staples ETF (FSTA)
Launched in 2013, the Fidelity MSCI Consumer Staples ETF (FSTA) aims to provide similar returns to the MSCI USA IMI Consumer Staples Index. The fund does this by investing a minimum of 80% of its assets in securities that are constituents of the tracked index. The fund holds stocks in the U.S. 澳洲幸运5官方开奖结果体彩网:consumer staples sector, with Walmart making up 8% of the ETF's portfolio. Other top holdings include Procter & Gamble Company (PG) at 12.02% and beverage giants Coca-Cola Company (KO) and PepsiCo, Inc. (PEP) at 7.57% and 7.11%, respectively.
The Fidelity MSCI Consumer Staples ETF has $1.09 billion in net assets and charges investors a low annual management fee of just 0.08%. The fund has a three-year annualized return of 5.94% and a five-year annualized return of 8.92%, as of April 30, 2024. A 澳洲幸运5官方开奖结果体彩网:dividend yield of 2.57% helps to offset the fund's lackluster performance.
Vanguard Consumer Staples ETF (VDC)
The Vanguard Consumer Staples ETF (VDC), formed in 2004, is designed to replicate the returns of the MSCI US Investable Market Consumer Staples 25/50 Index. The fund achieves this by investing the majority of its assets in securities that comprise the 澳洲幸运5官方开奖结果体彩网:benchmark index, namely U.S. stocks within the consumer staples sector. Walmart claims the third-largest allocation in the ETF's basket of stocks with a 7.97% 澳洲幸运5官方开奖结果体彩网:weighting. VDC's portfolio is top-heavy, with its top 10 holdings carrying a cumulative weighting of 61.64%. In total, the fund holds 103 stocks.
The Vanguard Consumer Staples ETF charges a 0.10% management fee and has a substantial asset base of $7.8 billion. It also paid two dividends as of April 30, 2024, one for $0.86 and the second for $1.79. VDC has five- and three-year annualized returns of 8.85% and 5.98%, respectively, as of April 30, 2024. For lifetime, the fund has returned 9.48%.
Which ETFs Hold Walmart Stock?
There are 443 ETFs holding Walmart stock as of Nov. 26, 2024, according to the ETF database VettaVi. For 111 of them, Walmart is among their top 15 holdings.
How Has Walmart Stock Performed in the Market?
Walmart (WMT) has been one of the top-performing stocks over the long term, rising more than 431,000% since its IPO in 1970. Over the 5 years before Nov. 2024, the stock price has gained 130%.
What Are Walmart's Biggest Risks?
As a major retailer with long supply chains, Walmart faces a long list of potential business risks. As listed on the company's 2024 annual report, these risks include strategic risks (such as failing to develop its online sales strategy), and operational risks, such as natural disasters, future pandemics, and failures in the global supply chain.
The Bottom Line
As a leading venue for both online and in-person sales, Walmart stock is a natural choice for investors who wish to gain exposure to the consumer retail sector. The ETFs listed here are just three of the hundreds of funds with stakes in Walmart stock.