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 Quick QuoteIYC - Free Report) , a passively managed exchange traded fund launched on June 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 $1.64 billion, making it one of the larger 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 0.38%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 0.5%.

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 68.4% of the portfolio. Telecom and Consumer Staples round out the top three.

Looking at individual holdings, Amazon Com Inc (AMZN) accounts for about 13.65% of total assets, followed by Tesla Inc (TSLA) and Netflix Inc (NFLX).

The top 10 holdings account for about 51.96% of total assets under management.

Performance and Risk

So far this year, IYC return is roughly 8.2%, and it's up approximately 9.78% in the last one year (as of 11/12/2025). During this past 52-week period, the fund has traded between $79.19 and $105.85.

The ETF has a beta of 1.20 and standard deviation of 18.03% for the trailing three-year period, making it a medium risk choice in the space. With about 174 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares U.S. Consumer Discretionary ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. IYC, then, is not a great choice for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. However, there are better ETFs in the space to consider.

Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $6.38 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $24.76 billion. VCR has an expense ratio of 0.09%, and XLY charges 0.08%.

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.