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Should You Invest in the Consumer Discretionary Select Sector SPDR ETF (XLY)?
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Looking for broad exposure to the Consumer Discretionary - Broad segment of the equity market? You should consider the Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) , a passively managed exchange traded fund launched on December 16, 1998.
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 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 14, placing it in bottom 13%.
Index Details
The fund is sponsored by State Street Investment Management. It has amassed assets over $12.02 billion, making it the largest ETF attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. XLY seeks to match the performance of the Consumer Discretionary Select Sector Index before fees and expenses.
The Consumer Discretionary Select Sector Index seeks to provide an effective representation of the consumer discretionary sector of the S&P 500 Index.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.
It has a 12-month trailing dividend yield of 0.78%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector -- about 100% of the portfolio.
Looking at individual holdings, Amazon.com Inc (AMZN) accounts for about 22.46% of total assets, followed by Tesla Inc (TSLA) and Home Depot Inc (HD).
Performance and Risk
Year-to-date, the Consumer Discretionary Select Sector SPDR ETF has added roughly 5.81% so far, and it's up approximately 2.48% over the last 12 months (as of 12/10/2025). XLY has traded between $88.17 and $121.09 in this past 52-week period.
The ETF has a beta of 1.24 and standard deviation of 20.97% for the trailing three-year period, making it a medium risk choice in the space. With about 53 holdings, it effectively diversifies company-specific risk.
Alternatives
Consumer Discretionary Select Sector SPDR 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, XLY 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.
iShares U.S. Home Construction ETF (ITB) tracks Dow Jones U.S. Select Home Construction Index and the Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index. iShares U.S. Home Construction ETF has $2.64 billion in assets, Vanguard Consumer Discretionary ETF has $6.29 billion. ITB has an expense ratio of 0.38%, and VCR charges 0.09%.
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.
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Should You Invest in the Consumer Discretionary Select Sector SPDR ETF (XLY)?
Looking for broad exposure to the Consumer Discretionary - Broad segment of the equity market? You should consider the Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) , a passively managed exchange traded fund launched on December 16, 1998.
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 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 14, placing it in bottom 13%.
Index Details
The fund is sponsored by State Street Investment Management. It has amassed assets over $12.02 billion, making it the largest ETF attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. XLY seeks to match the performance of the Consumer Discretionary Select Sector Index before fees and expenses.
The Consumer Discretionary Select Sector Index seeks to provide an effective representation of the consumer discretionary sector of the S&P 500 Index.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.
It has a 12-month trailing dividend yield of 0.78%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector -- about 100% of the portfolio.
Looking at individual holdings, Amazon.com Inc (AMZN) accounts for about 22.46% of total assets, followed by Tesla Inc (TSLA) and Home Depot Inc (HD).Performance and Risk
Year-to-date, the Consumer Discretionary Select Sector SPDR ETF has added roughly 5.81% so far, and it's up approximately 2.48% over the last 12 months (as of 12/10/2025). XLY has traded between $88.17 and $121.09 in this past 52-week period.
The ETF has a beta of 1.24 and standard deviation of 20.97% for the trailing three-year period, making it a medium risk choice in the space. With about 53 holdings, it effectively diversifies company-specific risk.
Alternatives
Consumer Discretionary Select Sector SPDR 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, XLY 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.
iShares U.S. Home Construction ETF (ITB) tracks Dow Jones U.S. Select Home Construction Index and the Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index. iShares U.S. Home Construction ETF has $2.64 billion in assets, Vanguard Consumer Discretionary ETF has $6.29 billion. ITB has an expense ratio of 0.38%, and VCR charges 0.09%.
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.