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 U.S. Consumer Discretionary ETF (IYC)?
Read MoreHide Full Article
If you're interested in broad exposure to the Consumer Discretionary - Broad segment of the equity market, look no further than the iShares U.S. Consumer Discretionary ETF (IYC - Free Report) , a passively managed exchange traded fund launched on 06/12/2000.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $702.21 million, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. IYC seeks to match the performance of the Dow Jones U.S. Consumer Services Index before fees and expenses.
The Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index measures the performance of the consumer services sector of the U.S. equity market.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.39%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.67%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 69.80% of the portfolio. Telecom and Consumer Staples round out the top three.
Looking at individual holdings, Amazon Com Inc (AMZN - Free Report) accounts for about 14.10% of total assets, followed by Tesla Inc (TSLA - Free Report) and Home Depot Inc (HD - Free Report) .
The top 10 holdings account for about 50.89% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Consumer Discretionary ETF return is roughly 13.86% so far, and it's up approximately 5.73% over the last 12 months (as of 05/29/2023). IYC has traded between $55.58 and $70.40 in this past 52-week period.
The ETF has a beta of 1.13 and standard deviation of 22.50% for the trailing three-year period, making it a medium risk choice in the space. With about 179 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Consumer Discretionary ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IYC is a reasonable option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Discretionary ETF (VCR - Free Report) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $4.21 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $15.07 billion. VCR has an expense ratio of 0.10% and XLY charges 0.10%.
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 U.S. Consumer Discretionary ETF (IYC)?
If you're interested in broad exposure to the Consumer Discretionary - Broad segment of the equity market, look no further than the iShares U.S. Consumer Discretionary ETF (IYC - Free Report) , a passively managed exchange traded fund launched on 06/12/2000.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $702.21 million, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. IYC seeks to match the performance of the Dow Jones U.S. Consumer Services Index before fees and expenses.
The Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index measures the performance of the consumer services sector of the U.S. equity market.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.39%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.67%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 69.80% of the portfolio. Telecom and Consumer Staples round out the top three.
Looking at individual holdings, Amazon Com Inc (AMZN - Free Report) accounts for about 14.10% of total assets, followed by Tesla Inc (TSLA - Free Report) and Home Depot Inc (HD - Free Report) .
The top 10 holdings account for about 50.89% of total assets under management.
Performance and Risk
Year-to-date, the iShares U.S. Consumer Discretionary ETF return is roughly 13.86% so far, and it's up approximately 5.73% over the last 12 months (as of 05/29/2023). IYC has traded between $55.58 and $70.40 in this past 52-week period.
The ETF has a beta of 1.13 and standard deviation of 22.50% for the trailing three-year period, making it a medium risk choice in the space. With about 179 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Consumer Discretionary ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IYC is a reasonable option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Discretionary ETF (VCR - Free Report) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $4.21 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $15.07 billion. VCR has an expense ratio of 0.10% and XLY charges 0.10%.
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.