Walmart Earnings Preview: Three Low-Cost ETFs to Watch

Walmart (WMT) is set to release its Q2 earnings tomorrow, August 20, and Wall Street analysts are expecting a beat on earnings per share and revenues despite concerns over inflation's impact on consumer confidence.

The uncertainty surrounding the report has led options traders to price in a roughly 5% move in either direction, up or down. For investors looking to gain exposure to Walmart without directly buying its stock, there are several ETFs available that hold WMT as a major holding.

Three low-cost ETFs with a traditional Walmart value approach have been identified: Global X PureCap MSCI Consumer Staples (GXPS), Fidelity Covington Trust MSCI Consumer Staples Index (FSTA), and VanEck Consumer Staples TruSector ETF (TRUO). These funds focus on consumer staples, which includes companies that produce essential goods such as food, beverages, household products, and personal care items.

Walmart has a significant weighting in each of these ETFs: 16.96% in GXPS, 13.89% in FSTA, and 12.44% in TRUO. The expense ratios for these funds are relatively low, at 0.15%, 0.08%, and 0.14%, respectively.