Retail Europe (RTA) : Change of rythm

Lyxor Stoxx Europe 600 Retail - RTA - 18/05/2018

Short Term strategy : Positive (100%) / Trend +
Long Term strategy: Positive (100%) / Trend +

Characteristics of the ETF

The ETF Lyxor RTA (Distribution Europe) created in 08/2006 is listed in Euro on Euronext and seeks to replicate the STOXX600 Retail index (SXRR) which is composed of the main European distribution stocks ​​of which approximately one third are English.

The costs of this ETF are 0.3% and the AUM approximately 22M €. Replication is indirect (via a swap) and there is a dividend capitalization policy. RTA is eligible for PEA.

Alternative ETFs: EXH8 (iShares in Euro), SC05 (Powershares in Euro)


Latest developments

The sector returned -1% in 2017 after a -5.8% drop in 2016, a much lower performance than stoxx600NR.

In 2018 the trend reversed and the index gained + 7.6%, which is significantly higher than the stoxx600NR (+ 3.3%). This is the result of the exceptional performance of Kering (+ 31.4%), the reversal of Tesco (+ 18.9%) and the good behavior of Ahold (+ 9.6%). At the same time, Inditex is starting to turn around after several quarters of consolidation, in the wake of a change in its distribution model.

The industry continues its transition toward a web-based distribution / physical distribution mix and is gradually adapting to Amazon's global price competition. The economic recovery in Europe is also helping the sector to regain momentum on volumes.


Index & components

This index is rather concentrated since it has only 27 holdings.

The index is essentially composed of large market capitalizations, with Kering in the first plalce (15.7% of the index capitalization)  and Inditex accounting for 13.3% of the index and weighing nearly € 80bn in capitalization.

The value of this index is its diversification from a business point of view, as it is composed of distribution stocks ​​with a strong food component, ie hypermarkets (Tesco, Carrefour, Ahold, Casino, etc.) which are usually defensive but which are also overall looking for some new business models based on e-commerce or refocusing on their domestic markets, because of difficult emerging markets and sometimes excessive indebtedness. Other companies such as Inditex, Next, Hennes & Mauritz or Kering are more closely linked to fashion and textile / ready-to-wear distribution, which essentially makes them growth stocks, while we will also find in this index companies ​​such as Kingfisher who are distributors specializing in construction with an essentially cyclical business model.

All in all, this makes it a varied index with moderate volatility, while Inditex is historically a pole of stability due to its weight and growth momentum. The industry faces many challenges, including the one posed by e-commerce players (Amazon in the first place) that crush prices and change the customer relationship by redefining the supply chain and offering new services.

The strategic trend is for the combination of physical networks and e-commerce platforms, so we see Carrefour reiterate its ambitions for expansion in e-commerce in the wake of Walmart in the US while Amazon makes acquisitions in the goal of acquiring a physical network in the United States coupled with ambitions in Europe. Consolidation movements are expected, while bankruptcies could also occur like Toys'r us last year in the United States.

Monthly data

After two years of stagnation in 2016 and 2017, the index has risen sharply since April. The two candlesticks in April and May represent a cumulative increase of nearly 14%, which reverses the long-term trend. The MACD has just crossed upwards and returns to the zero line at the same time, while moving averages are rising again. This is a real change of pace that we are seeing on the index.

Weekly data

On the weekly chart, we can observe the sudden bullish expulsion after the index's volatility drop observed between 2016 and 2017, which allows to overcome the main resistance of May 2017 at around € 37.5. The next target is on 2015 levels in the 41 € zone. The index has become bullish again over all time horizons.

ETF Objective

RTA is a UCITS ETF listed in €, which seeks to replicate the STOXX Europe 600 Retail (Net Return) EUR index (27 european companies)


Inception date 25/08/2006
Expense ratio 0,30%
Benchmark SXRR - stoxx 600 Retail
Issuer Lyxor
code/ticker RTA
ISIN FR0010344986
Category UCITS
Currency EUR
Exchange Euronext Paris
Assets Under Management 22 M€
Replication Method Indirect (swap)
Dividend Capitalization
PEA (France) Yes
SRD (France) Yes
Currency risk Yes
Number of Holdings 27
Risk 3/5

Country Breakdown

United Kingdom 35%
France 22%
Spain 14%
Sweden 10%
Netherlands 7%
Germany 6%
Others 7%

Sector Breakdown

Consumer discretionary 56%
Consumer staples 40%
Technology 3%
Financials 1%

Top Ten Holdings

Kering 16%
Inditex 13%
Tesco 12%
Konin Ahold 10%
Hennes & Mauritz 5%
Carrefour 5%
Next Plc 4%
Kingfisher 3%
WM Morrison 3%
Zalando 3%