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Americans are again gaining optimism as consumer confidence rose for the second consecutive month. Rising consumer confidence bodes well for household spending in the coming months and is expected to have a positive impact on the consumer discretionary sector, which attracts a major portion of consumer spending.
As such, investors could tap the encouraging trend in the basket form through consumer discretionary ETFs like Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Invesco S&P SmallCap Consumer Discretionary ETF (PSCD - Free Report) and SPDR S&P Retail ETF (XRT - Free Report) . These funds have a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy), suggesting their outperformance in the months ahead.
The Conference Board Consumer Confidence Index climbed to a five-month high at 108.0 from 103.6 in August. Falling gas prices and a strong job market have rekindled some confidence in the economy despite the recessionary fears, especially after another 75 bps rate hike by the Fed. However, high inflation and interest-rate hikes remain solid positives for the short term (read: 4 Top-Ranked ETFs Set to Explode as Rate Rises).
The present situation index, which measures consumer sentiment toward current business and labor market conditions, rose to 149.6 from 145.3 last month. The expectations index, which assesses the short-term outlook for income, business and labor market conditions, jumped to 80.3 from 75.8.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space and tracks the Consumer Discretionary Select Sector Index. It holds 56 securities in its basket with key holdings in automobiles, Internet & direct marketing retail, hotels, restaurants and leisure, and specialty retail round off the next three spots with a double-digit allocation each.
Consumer Discretionary Select Sector SPDR Fund is the largest and most-popular product in this space, with AUM of $14.7 billion and an average daily volume of around 5 million shares. It charges 0.10% in expense ratio and has a Zacks ETF Rank #1 with a Medium risk outlook.
Vanguard Consumer Discretionary ETF follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 311 stocks in its basket. In terms of industrial exposure, Internet & direct marketing retail, automobile manufacturers and restaurants occupy the top three spots.
Vanguard Consumer Discretionary ETF is the low-cost choice in the space, charging investors only 10 bps in annual fees while volume is good at nearly 79,000 shares a day. The fund has managed $4.3 billion in its asset base so far. Vanguard Consumer Discretionary ETF has a Zacks ETF Rank #1 with a Medium risk outlook.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 330 stocks in its basket.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1 billion in its asset base while trading in a good volume of around 78,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #1 with a Medium risk outlook (read: 5 Sectors & Its Top ETFs to Play Solid Dividend & Buyback Yield).
Invesco S&P SmallCap Consumer Discretionary ETF targets the small-cap segment of the broad consumer discretionary space by tracking the S&P SmallCap 600 Capped Consumer Discretionary Index. It holds 90 securities in its basket, with specialty retail taking the largest share at 35.5%, while household durables, and hotels, restaurants and leisure account for double-digit exposure each.
Invesco S&P SmallCap Consumer Discretionary ETF has attracted $21.8 million in AUM and charges 29 bps in annual fees. It trades in an average daily volume of under 1,000 shares and has a Zacks ETF Rank #2 with a High risk outlook.
SPDR S&P Retail ETF tracks the S&P Retail Select Industry Index, which provides exposure across large, mid-and small-cap retail stocks. It holds well-diversified 97 stocks in its basket. SPDR S&P Retail ETF is well spread across various industries with a double-digit allocation each in apparel retail, automotive retail, specialty stores and Internet & direct marketing retail (read: Best Industry ETFs to Play).
SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $254 million and an average trading volume of 4.5 million shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
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Consumer Confidence Jumps: ETFs to Add
Americans are again gaining optimism as consumer confidence rose for the second consecutive month. Rising consumer confidence bodes well for household spending in the coming months and is expected to have a positive impact on the consumer discretionary sector, which attracts a major portion of consumer spending.
As such, investors could tap the encouraging trend in the basket form through consumer discretionary ETFs like Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) , Invesco S&P SmallCap Consumer Discretionary ETF (PSCD - Free Report) and SPDR S&P Retail ETF (XRT - Free Report) . These funds have a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy), suggesting their outperformance in the months ahead.
The Conference Board Consumer Confidence Index climbed to a five-month high at 108.0 from 103.6 in August. Falling gas prices and a strong job market have rekindled some confidence in the economy despite the recessionary fears, especially after another 75 bps rate hike by the Fed. However, high inflation and interest-rate hikes remain solid positives for the short term (read: 4 Top-Ranked ETFs Set to Explode as Rate Rises).
The present situation index, which measures consumer sentiment toward current business and labor market conditions, rose to 149.6 from 145.3 last month. The expectations index, which assesses the short-term outlook for income, business and labor market conditions, jumped to 80.3 from 75.8.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space and tracks the Consumer Discretionary Select Sector Index. It holds 56 securities in its basket with key holdings in automobiles, Internet & direct marketing retail, hotels, restaurants and leisure, and specialty retail round off the next three spots with a double-digit allocation each.
Consumer Discretionary Select Sector SPDR Fund is the largest and most-popular product in this space, with AUM of $14.7 billion and an average daily volume of around 5 million shares. It charges 0.10% in expense ratio and has a Zacks ETF Rank #1 with a Medium risk outlook.
Vanguard Consumer Discretionary ETF (VCR - Free Report)
Vanguard Consumer Discretionary ETF follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 311 stocks in its basket. In terms of industrial exposure, Internet & direct marketing retail, automobile manufacturers and restaurants occupy the top three spots.
Vanguard Consumer Discretionary ETF is the low-cost choice in the space, charging investors only 10 bps in annual fees while volume is good at nearly 79,000 shares a day. The fund has managed $4.3 billion in its asset base so far. Vanguard Consumer Discretionary ETF has a Zacks ETF Rank #1 with a Medium risk outlook.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 330 stocks in its basket.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1 billion in its asset base while trading in a good volume of around 78,000 shares a day on average. It charges 8 bps in annual fees from investors and has a Zacks ETF Rank #1 with a Medium risk outlook (read: 5 Sectors & Its Top ETFs to Play Solid Dividend & Buyback Yield).
Invesco S&P SmallCap Consumer Discretionary ETF (PSCD - Free Report)
Invesco S&P SmallCap Consumer Discretionary ETF targets the small-cap segment of the broad consumer discretionary space by tracking the S&P SmallCap 600 Capped Consumer Discretionary Index. It holds 90 securities in its basket, with specialty retail taking the largest share at 35.5%, while household durables, and hotels, restaurants and leisure account for double-digit exposure each.
Invesco S&P SmallCap Consumer Discretionary ETF has attracted $21.8 million in AUM and charges 29 bps in annual fees. It trades in an average daily volume of under 1,000 shares and has a Zacks ETF Rank #2 with a High risk outlook.
SPDR S&P Retail ETF (XRT - Free Report)
SPDR S&P Retail ETF tracks the S&P Retail Select Industry Index, which provides exposure across large, mid-and small-cap retail stocks. It holds well-diversified 97 stocks in its basket. SPDR S&P Retail ETF is well spread across various industries with a double-digit allocation each in apparel retail, automotive retail, specialty stores and Internet & direct marketing retail (read: Best Industry ETFs to Play).
SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $254 million and an average trading volume of 4.5 million shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.