Should You Invest in the VanEck Retail ETF (RTH)?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 01 2024
0mins
Source: NASDAQ.COM
Overview of VanEck Retail ETF (RTH): Launched in 2011, RTH is a passively managed ETF that provides broad exposure to the Consumer Discretionary - Retail sector, with a low expense ratio of 0.35% and significant holdings in major companies like Amazon, Costco, and Walmart.
Performance and Investment Considerations: RTH has shown strong performance with a 31.17% increase over the past year, and it holds a Zacks ETF Rank of 2 (Buy), indicating it as a solid investment option within its sector despite being more concentrated than some peers.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMZN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 246.000
Low
175.00
Averages
280.01
High
325.00
Current: 246.000
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Job Creation: Amazon's project in Missouri is expected to create over 400 full-time jobs and thousands of construction roles, significantly boosting the local job market and driving economic growth.
- Community Investment Commitment: The company has committed over $7 million for community investments, including $3 million for emergency dispatch services and $1 million for a community space, aiming to strengthen ties and support local communities.
- Sustainable Energy Use: The data center will utilize 138 MW of carbon-free energy, enough to power approximately 28,000 homes, and will implement efficient 'free air cooling' technology, limiting water usage to only 7% of the year.
- Tax Revenue Expectations: Local officials anticipate the project will generate hundreds of millions in new tax revenue, compared to less than $9,000 previously from the land, highlighting the significant positive impact on local finances.
See More
- AI Model Development: Amazon's AI chief Peter DeSantis stated that the company aims to compete with OpenAI and Anthropic on frontier models within the next year, despite currently lagging in performance on large workloads, indicating Amazon's determination to catch up in the AI sector.
- Launch of Nova2 Model: Amazon released its latest AI model, Nova2, in December, with approximately 50,000 customers currently using it; although DeSantis acknowledged that it has not yet reached the level of the most capable intelligent models, this launch demonstrates Amazon's proactive positioning in the AI market.
- Custom Chip Strategy: Amazon designs its own chips under the Trainium and Graviton brands to enhance AI model performance, with DeSantis noting that Amazon's capabilities in chip design and production are comparable to Nvidia, showcasing its competitiveness in AI infrastructure.
- Cloud Computing Capacity: Amazon effectively rents out computing capacity through its AWS division, with Anthropic being one of its major customers; while DeSantis mentioned the potential to sell Trainium chips to third parties in the future, this could further expand Amazon's influence in the AI infrastructure market.
See More
- Quantum Commercialization Prediction: Amazon AI executive Peter DeSantis predicts that the first commercially viable small-scale quantum computers will emerge within the next five to seven years, marking a significant shift from theoretical research to practical applications that could solve problems beyond current computing capabilities.
- Intensifying Tech Competition: DeSantis emphasizes that the development of quantum technology will mirror Moore's Law, with quantum computers expected to grow larger and tackle increasingly complex problems over time, enhancing Amazon's competitive edge in the tech sector.
- Diverse Engineering Strategies: Amazon's approach to quantum computing diverges from IBM and Google, focusing on internal hardware research and cloud partnerships leveraging neutral-atom technologies, aiming for stability and commercialization of quantum systems.
- Positive Market Sentiment: Retail sentiment around AMZN stock has surged, with a 108% increase in discussion volume over the past 30 days, reflecting investor optimism about Amazon's potential in quantum computing, while AMZN stock has gained 3.5% year-to-date.
See More
- AI Model Competition Goal: Amazon's executive Peter DeSantis stated that the company aims to compete with frontier AI labs like OpenAI and Anthropic within the next year, despite currently lagging behind in large workload models.
- Nova2 Customer Base: Amazon's latest AI model, Nova2, has attracted around 50,000 customers, with DeSantis expressing excitement, although he admits the model has not yet reached the standard of being one of the most capable intelligent models, the company remains optimistic about its future development.
- Semiconductor Strategy: Amazon designs its own custom chips under the Trainium and Graviton brands, with DeSantis highlighting that this strategy allows the company to drive optimal performance for its AI models and compete against rivals like Nvidia.
- Cloud Computing Capacity: Amazon effectively rents out its computing capacity through its cloud division AWS, and while there are currently no plans to sell Trainium chips to third parties, DeSantis mentioned that the company may consider this option in the future to meet the innovative demands of AI infrastructure.
See More
- Significant Funding Round: Odyssey raised $310 million in its Series B funding, achieving a valuation of $1.45 billion, reflecting strong investor interest in advanced simulation technologies as AI companies evolve towards complex task execution.
- AWS Partnership Agreement: The startup has partnered with Amazon Web Services as its preferred cloud provider, gaining access to specialized Trainium chips designed for high-performance AI systems, which is expected to accelerate its market deployment.
- Accelerated Technological Breakthroughs: Co-founder Oliver Cameron highlighted major advancements in scaling, interactivity, and physics accuracy in recent years, driving rapid progress in the AI field, particularly in achieving general world models.
- Research Systems Launch: Over the past three years, Odyssey has released several research systems, including Odyssey-2 Max and Starchild-1, focusing on enhancing physics accuracy and multi-agent coordination in simulated environments, further solidifying its technological leadership in AI.
See More
- Market Sentiment Analysis: Jim Cramer highlights the current stock market's struggle between passion and rigor, where many investors oscillate between emotional and rational decision-making, leading to increased volatility and impacting the effectiveness of investment strategies.
- Federal Reserve Policy Outlook: New Chairman Kevin Warsh is set to hold his first press conference on Wednesday, with widespread speculation on whether interest rates will need to be raised once or twice this year; Cramer believes rates should remain unchanged or prepare for cuts in response to declining oil prices and inflationary pressures.
- Economic Disparity: Cramer emphasizes the growing economic divide in the U.S., where the wealthy continue to accumulate wealth through stock appreciation while ordinary citizens struggle with high oil prices and inflation, exacerbating market uncertainty and complicating investment decisions.
- Investment Strategy Advice: Cramer advises investors to maintain a balance of passion and rigor in their portfolios, suggesting that this approach may yield better returns in a high-volatility market, particularly in the current economic climate where moderate speculation could lead to higher profits.
See More










