We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Invest in the iShares Global Consumer Discretionary ETF (RXI)?
Read MoreHide Full Article
Looking for broad exposure to the Consumer Discretionary - Broad segment of the U.S. equity market? You should consider the iShares Global Consumer Discretionary ETF (RXI - Free Report) , a passively managed exchange traded fund launched on 09/12/2006.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 12, placing it in bottom 25%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $253.88 M, making it one of the average sized ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the U.S. equity market. RXI seeks to match the performance of the S&P Global 1200 Consumer Discretionary Sector Index before fees and expenses.
The S&P Global Consumer Discretionary Sector Index measures the performance of companies that are part of the consumer discretionary sector of the economy and that are important to global markets. It is a subset of the S&P Global 1200 Index. Components include consumer product manufacturing, service, media and retail companies.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.19%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Amazon Com Inc (AMZN - Free Report) accounts for about 13.36% of total assets, followed by Home Depot Inc (HD - Free Report) and Toyota Motor Corp (7203).
The top 10 holdings account for about 39.76% of total assets under management.
Performance and Risk
The ETF return is roughly 5.49% and was up about 16.60% so far this year and in the past one year (as of 05/28/2018), respectively. RXI has traded between $98.03 and $119.68 during this last 52-week period.
The ETF has a beta of 1.10 and standard deviation of 13.89% for the trailing three-year period, making it a low risk choice in the space. With about 188 holdings, it effectively diversifies company-specific risk.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should You Invest in the iShares Global Consumer Discretionary ETF (RXI)?
Looking for broad exposure to the Consumer Discretionary - Broad segment of the U.S. equity market? You should consider the iShares Global Consumer Discretionary ETF (RXI - Free Report) , a passively managed exchange traded fund launched on 09/12/2006.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 12, placing it in bottom 25%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $253.88 M, making it one of the average sized ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the U.S. equity market. RXI seeks to match the performance of the S&P Global 1200 Consumer Discretionary Sector Index before fees and expenses.
The S&P Global Consumer Discretionary Sector Index measures the performance of companies that are part of the consumer discretionary sector of the economy and that are important to global markets. It is a subset of the S&P Global 1200 Index. Components include consumer product manufacturing, service, media and retail companies.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.48%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.19%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Amazon Com Inc (AMZN - Free Report) accounts for about 13.36% of total assets, followed by Home Depot Inc (HD - Free Report) and Toyota Motor Corp (7203).
The top 10 holdings account for about 39.76% of total assets under management.
Performance and Risk
The ETF return is roughly 5.49% and was up about 16.60% so far this year and in the past one year (as of 05/28/2018), respectively. RXI has traded between $98.03 and $119.68 during this last 52-week period.
The ETF has a beta of 1.10 and standard deviation of 13.89% for the trailing three-year period, making it a low risk choice in the space. With about 188 holdings, it effectively diversifies company-specific risk.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.