Walmart (WMT) is set for continued growth despite facing pressure from President Trump’s tariffs policy and consumer uncertainty. It has wide coverage both in the U.S. and abroad particularly Canada, Mexico and India, a strong supply chain and loyal customers.
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Its bulk purchasing power, efficient operations, and understanding of its customers’ financial needs help maintain value prices. Other strengths include its digital growth and general merchandise appeal such as fashion.
On May 15, WMT announced its first-quarter results, highlighting a revenue growth of 2.5% and an operating income increase of 4.3%. The company reported a 22% rise in global e-commerce sales and issued guidance for the second quarter with expected net sales growth of 3.5% to 4.5%.
Investors looking for exposure to WMT stock may consider investing in these two ETFs: Vanguard Consumer Staples (VDC) and the VanEck Retail ETF (RTH).
Let’s take a closer look at these two ETFs.
VanEck Retail ETF
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 9.42% of the ETF’s holdings. Apart from WMT, some of the top holdings in the ETF include Amazon (AMZN), Costco (COST) and Home Depot (HD).
Overall, the ETF has $240.83 million assets under management (AUM) and an expense ratio of 0.35%. Year-to-date, the RTH ETF has generated a return of 4.76%.
On TipRanks, RTH has a Strong Buy consensus rating based on 24 Buy and 2 Holds. Its consensus price target is $265.07 implying an 12.90% upside potential.
Vanguard Consumer Staples ETF
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 12.31% of the ETF’s holdings.
Apart from WMT, some of the top stocks in the VDC ETF are Procter & Gamble (PG), Coca-Cola (KO) and Mondelez International (MDLZ).
Overall, the ETF has $7.68 billion in assets under management. Also, it has an expense ratio of 0.09%. The VDC ETF has returned 6.82% so far this year.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating based on 58 Buy, 44 Hold and 2 Sell ratings. Its consensus price target is $240.56 implying an 7.73% upside potential.
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.