Are you familiar with “The Becky Index”?
It’s a great thought experiment/concept. It’s not a real exchange-traded fund (ETF).
But there’s a lot of data behind it.
And it seems like a solid strategy, buying the stocks of companies where women spend a lot of money.
So wait until you see what my friend Jeff Macke has come up with…
The One Where Becky Meets Jeff
“The S&P Becky 10 Index” was a made-up basket of stocks.
It was based on a 2009 article in the Harvard Business Review about the “female economy.”
It included names like Chipotle Mexican Grill (CMG), Etsy (ETSY), Lululemon (LULU), Netflix (NFLX), Peloton (PTON) and Pinterest (PINS).
There’s also Adobe (ADBE), Apple (AAPL), and Facebook parent Meta Platforms (META).
And, if the Becky Index ETF did exist, the returns would have been pretty impressive…
But we have a better index that comes from my friend Jeff Macke. His is more of a “Hot Moms Index” and less about Becky.
More specifically, this is where the hot moms hang out and/or spend their money.
The 10-stock list currently includes…
On Holding (ONON), Dave & Buster’s (PLAY), Victoria’s Secret (VSCO), The Gap (GAP), Urban Outfitters (URBN), Ralph Lauren (RL), Canada Goose (GOOS), Dutch Bros (BROS), Aritzia (ATZAF) and…
Walmart (WMT).
Yes, Walmart…
According to Macke, the hot moms have moved on from Target (TGT) and are hanging at Walmart:
Look at the difference in returns since 2022.
WMT has doubled while TGT has been crushed.
Get Up ONON It
Of all the Macke names, the one I like most is the Swiss shoe company On Holding (ONON).
And he loves it too.
Speaking of “hot moms,” I think my wife fits that description. (I definitely outkicked my coverage.)
And she’s on her third pair.
You see, a few years ago, we were trading the stock.
Some clients made fun of me because I didn’t know anything about the shoe.
They told me how great they were for tennis or just lounging.
So, I took some of the profits we made and bought a pair of shoes, just to check them out.
I didn’t actually need a new pair of shoes.
And, when the shoes arrived, my wife made a point to reiterate that I did not need another pair of sneakers.
“It’s just research, babe…”
So, in that spirit, Mrs. Parets asks nicely if maybe she should do some “research” and get a pair for herself.
“Sure, knock yourself out.”
And here we are, ONON pushing up against new all-time highs::
My wife has now fully retired from Nike (NKE) and is all On these days.
First, The Becky Index got my attention.
Then, my friend Jeff made a better version.
I like Jeff’s lot more.
And we both think ONON is the best of the pack.
So does my wife.
And she’s always right.
Just ask her!
Stay sharp,
JC Parets, CMT
Founder, TrendLabs