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Valentine’s Day is around the corner and people are planning to celebrate this day with their loved one or with their spouse or significant family members. Americans are expected to shell out $25.8 billion on Valentine’s Day this year, an average of $185.81 per person, on par with last year’s spending and the third highest in the survey’s history, according to the National Retail Federation (“NRF”).

Investors seeking to capitalize on the Valentine’s Day splurge should invest in consumer discretionary and retail ETFs with the stock market at all-time highs. Five excellent picks in this regard are Amplify Online Retail ETF (IBUY - Free Report), AdvisorShares Restaurant ETF (EATZ - Free Report), iShares U.S. Consumer Focused ETF (IEDI - Free Report), SPDR S&P Retail ETF (XRT - Free Report) and Global X Millennial Consumer ETF (MILN - Free Report).

About 53% of consumers plan to celebrate this year, with the most significant section being consumers aged 25-34 years. As many as 62% of the consumers in this age group are planning to celebrate this year, more than any other age group.

The top gifts include candy at 57%, greeting cards at 40%, flowers at 39%, an evening out at 32%, jewelry at 22%, clothing at 21% and gift cards at 9%. Meanwhile, online stores continue to be the most popular destination to shop for Valentine’s Day gifts at 40%, up from 35% last year. Consumers also plan to head to department stores (33%), discount stores (31%) and florists (17%).

Spending on significant others is expected to reach a new record of $14.2 billion, up from $13.5 billion recorded last year. Spending on jewelry, flowers, clothing and an evening out is also expected to hit a new high of $16.9 billion on a combined basis.

ETFs in Focus

Amplify Online Retail ETF (IBUY)

Amplify Online Retail ETF offers global exposure to companies with significant revenues from the online retail business, traditional online retail, online travel, online marketplace, and omnichannel retail by tracking the EQM Online Retail Index. IBUY holds 71 stocks in its basket, with none accounting for more than 4.5% of the assets. Amplify Online Retail ETF has the largest allocation in online retail at 39% and online marketplace at 35%.

Amplify Online Retail ETF has attracted $186.1 million in its asset base and charges 65 bps in annual fees.

AdvisorShares Restaurant ETF (EATZ)

AdvisorShares Restaurant ETF is an actively managed and the only ETF investing exclusively in the restaurant and food service industry, including restaurants, bars, pubs, fast food, take-out facilities, food catering services and more. AdvisorShares Restaurant ETF holds 24 securities in its basket with a modest concentration on the top firms.

AdvisorShares Restaurant ETF has gathered $2.9 million in its asset base. EATZ charges 1.01% as annual fees.

iShares U.S. Consumer Focused ETF (IEDI)

iShares U.S. Consumer Focused ETF is an actively managed ETF providing exposure to U.S. companies with a focus on U.S. consumer spending and consumer goods. It holds 185 stocks in its basket, with a heavy concentration on the top two firms. IEDI is dominated by the consumer discretionary sector with nearly half of the portfolio, while consumer staples distribution & retail and consumer services occupy the next two spots with double-digit exposure each.

iShares U.S. Consumer Focused ETF has accumulated $16.3 million in its asset base and charges 18 bps in fees per year.

SPDR S&P Retail ETF (XRT)

SPDR S&P Retail ETF tracks the S&P Retail Select Industry Index, which provides exposure across large, mid-and small-cap retail stocks. It holds well-diversified 76 stocks in its basket with spread-out exposure across various industries in apparel retail, automotive retail, specialty stores, and broadline retail.

SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $563.2 million and an expense ratio of 0.35%. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

Global X Millennial Consumer ETF (MILN)

Global X Millennial Consumer ETF seeks to invest in companies that have a high likelihood of benefiting from the rising spending power and unique preferences of the U.S. Millennial generation (birth years ranging from 1980-2000). These companies come from a broad range of categories, including social media and entertainment, food and dining, clothing and apparel, health and fitness, travel and mobility, education and employment, housing and home goods, and financial services.

Global X Millennial Consumer ETF tracks the Indxx Millennials Thematic Index, holding 81 stocks in its basket. It has AUM of $116.6 million and an expense ratio of 0.50%.

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