ETFs Mixed as Google Weighs, Food & Bev Rises

Retail ETFs showed mixed performance Wednesday afternoon. The Invesco S&P Spin-Off ETF (CSD) gained nearly 0.6%, while the SPDR S&P Retail ETF (XRT) declined 0.5%.

This comes as Victoria’s Secret shares surged over 16% following the appointment of former Savage X Fentry CEO Hillary Super as the company’s new chief executive.

Meanwhile, food related ETFs saw positive momentum. The iShares Emergent Food and AgTech Multisector ETF (IVEG) rose 0.4%, and the First Trust Nasdaq Food & Beverage ETF (FTXG) climbed 1.1%.

These gains were largely driven by Kellanova’s stock jump of 7.7% after the announcement of its acquisitions by Mars in a deal valued at about $36 billion. The deal is expected to close in the first half of 2025, and comes after Kellogg’s strategic split into two public companies–Kellanova and WK Kellogg.

U.S. stocks showed mixed performance Wednesday following the release of encouraging inflation data. Consumer prices rose 2.9% year-over-year in July, down from 3% in June and below economists’ expectations. The SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.6%, while the SPDR S&P 500 ETF Trust (SPY) edged up 0.2%. 

ETFs holding Alphabet Inc. saw varied results after reports that the Department of Justice is considering breaking up the tech giant. 

The Vanguard Communication Services ETF (VOX), Fidelity MSCI Communication Services Index ETF (FCOM) and Communication Services Select Sector SPDR Fund (XLC) all fell at least 0.6%, while the Kurv Technology Titans Select ETF (KQQQ) was down bout 0.3%. 

Consumer-focused ETFs reversed early gains, with the Opal Dividend Income ETF (DIVZ) and the Global X Millennial Consumer ETF (MILN) both down about 0.2%. This comes despite Starbucks shares falling 4.3%, following a 24.5% surge the previous day on news of a CEO change.