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Retail stocks are rallying this year after many years of underperformance. The S&P Retail Select Industry Index (TR) has gained almost 13% this year, significantly outpacing the S&P 500 Index (TR), which is up just about 4%.

Retail sales for May saw their highest monthly rise in six months. With tax cuts, tightening labor markets and rising wages, Americans are now spending more.

Even traditional retailers that were left for dead earlier, mainly due to the Amazon (AMZN) effect, are doing well of late. In fact, shares of some retailers, like Macy’s (M), Dillard’s (DDS) and Abercrombie & Fitch (ANF) have outperformed Amazon this year.

In this video, we highlighted the three most popular retail ETFs— SPDR S&P Retail ETF (XRT - Free Report), Amplify Online Retail ETF (IBUY - Free Report) and VanEck Vectors Retail ETF (RTH - Free Report). 

XRT, the most popular product in the space, is equal weighted. IBUY which holds global companies that derive at least 70% of their revenues from online sales, equally weights holdings within the two geographic buckets.

RTH holds a market-cap weighted portfolio of 25 largest US-listed retail companies.