Home Depot Hit Affects 300 ETFs

February 23, 2022

The U.S. stock market fell Tuesday after Russian President Vladimir Putin ordered Russian forces to enter two breakaway regions in Ukraine. Home Depot—announcing better-than-expected quarterly results except for a decline in gross profit margin—was hit pretty hard by the sell-off, notching a share price decline of 8.85% by the end of trading.  

Home Depot (HD) is a holding in 298 different ETFs, with 85.2 million shares held across those nearly 300 funds.

The fund with the most HD exposure is the $218 million Van Eck Retail ETF (RTH), with a 13.85% allocation to the stock. It’s followed by the actively managed iShares Evolved U.S. Discretionary Spending ETF (IEDI), which has an allocation of 8.46%, and the Vanguard Consumer Discretionary ETF (VCR), which has an allocation of 7.20%. The Fidelity MSCI Consumer Discretionary Index ETF (FDIS) and the Nationwide Dow Jones Risk-Managed Income ETF (NDJI) have allocations to the stock of 6.8% and 6.76%, respectively.  

 

 

While the ETFs with the most significant allocations to Home Depot stock were mostly sector funds, the funds holding the most shares of the stock are all broadly focused funds. The SPDR S&P 500 ETF Trust (SPY) holds 11.3 million shares, or more than 13% of all the HD shares held by U.S.-listed ETFs.

Although SPY is a behemoth of a fund, approaching $395 billion in size, the smaller $319 billion iShares Core S&P 500 ETF (IVV) holds 8.89 million shares of the stock and the $276 billion Vanguard S&P 500 ETF (VOO) holds 7.31 million shares. All three funds have a weighting of roughly 1% to HD shares.  

The much broader (with more than 4,000 holdings) $279 billion Vanguard Total Stock Market ETF (VTI) holds 6.46 million shares, while the specialized $64 billion Vanguard Dividend Appreciation ETF (VIG) holds 5.85 million shares. VTI and VIG weight HD at 0.89% and 3.48%, respectively.  

 

 

The top-performing ETFs over the past 30 days that hold positions in HD are an entirely separate set of ETFs. The ProShares RAFI Long/Short ETF (RALS), whhich has an allocation to the stock of 0.63%, was up 1.63%, while the Franklin Liberty Systematic Style Premia ETF (FLSP), wiith an allocation of 1.36%, was up 1.03%.  

The SPDR Global Dow ETF (DGT), meanwhile, was up 0.81% during the 30-day period; the fund has an allocation to HD of 0.68%. The JPMorgan Active Value ETF (JAVA), with a 0.59% allocation, was up just 0.50%.  

And the newly launched Amberwave Invest USA JSG Fund (IUSA) was essentially flat during the period. It has a weighting of 1.22% in HD shares.  

 

 

Actively managed ETFs are by far the largest category holding HD shares, with 68 funds allocating to the stock. Plain vanilla cap-weighted ETFs represent 48 of the nearly 300 ETFs holding Home Depot, while 44 and 28 multifactor and fundamental ETFs, respectively, have positions in HD. And HD has a presence in the portfolios of 27 ESG ETFs.  

 

Contact Heather Bell at [email protected]

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