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Top ETFs to Ride the Target & Lowe’s Earnings Surge

On Wednesday, both Target and Lowe’s — two vastly different retail giants — reported their Q1 2026 earnings results. Considering the relatively uncertain state of inflation and consumer enthusiasm as of late, these two reports offered a prime opportunity to see how the retail sector is doing.

Key Takeaways:

Target’s first quarter earnings for the year scored higher than many expected, increasing the retail giant’s optimism for 2026.
Lowe’s saw its first quarter revenue increase roughly 10% from last year, propelled by a surge in online sales.
While there are many ways to tackle Target and Lowe’s exposure through the ETF wrapper, RTH and SDY are doing so with impressive track records.

Target Sets Higher Goals Amid Earnings Surge

Target’s earnings have roundly outpaced what many analysts had expected. First quarter net sales rose by 6.7% year over year, with traffic in both its stores and digital front growing 4.4% over Q1 2025. Target has now updated its full-year outlook to a net sales growth of 4% from 2025. The company’s previous outlook was only a 2% net sales growth for 2026.

“While we’re pleased with our Q1 performance, our focus remains on building consistent, long-term growth, and we recognize there is much more work in front of us,” said Michael Fiddelke, Target CEO. “As we look ahead, we’re focused on staying disciplined and flexible in an uncertain operating environment and continuing to invest boldly in our team, capabilities, and an elevated guest experience to unlock our full potential over time.”

See more: Tackle Market Uncertainty With This Consumer Staples ETF

Lowe’s Builds Momentum With Massive Revenue Jump

The Lowe’s earnings report was certainly no disappointment, either. The home improvement retail giant also outpaced analyst expectations, with revenue roughly 10% higher than Q1 2025’s report. Online sales were a huge source of momentum here — Lowe’s notes that online sales grew 15.5% compared to last year’s numbers.

“Strong spring execution and continued momentum in Pro, Appliances, Online, and Home Services supported a solid start to the year as we delivered our fourth consecutive quarter of positive comp sales,” noted Marvin R. Ellison, Lowe’s chairman, president and CEO. “In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy to provide the best experience for our customer.

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RTH & SDY: 2 Ways to Play Target & Lowe’s Exposure

There are plenty of different ways investors can gain access to both Target and Lowe’s through the ETF wrapper. For instance, one may choose to do so through the VanEck Retail ETF (RTH).

True to its name, RTH provides distinct exposure to a number of top names in the retail industry through a singular portfolio. Of course, this includes both Target and Lowe’s.

In the near-term, RTH’s approach to retail exposure has been posting noticeable results. As of April 30, 2026, the fund’s NAV has risen 7.69% in the last month.

Alternatively, one could opt to pursue income through something like the State Street SPDR S&P Dividend ETF (SDY). SDY invests in large caps with a storied history of paying out dividends. Again, both Target and Lowe’s are included in its holdings.

Those who have already invested in SDY have been able to tap into both income and long-term growth. Year to date, the fund’s NAV has risen 8.50%, as of April 30, 2026. Meanwhile, as of May 19, 2026, SDY is offering a 30 day SEC yield of 2.48%.

RTH and SDY are just two examples of the many different ways that advisors and investors can gain focused exposure to these companies through the ETF wrapper. Whether it’s traditional growth, income, or a different objective entirely, there are plenty of different strategies that one can employ to make the most of the opportunities in the retail sector.

For more news, information, and strategy, visit ETF Trends.

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