Average Daily Volume
4.5M
Fund Overview
The Consumer Discretionary Select Sector SPDR Fund (XLY) is an ETF that seeks to provide investment results that correspond to the performance of the Consumer Discretionary Select Sector Index. This index includes companies from industries such as retail, media, hotels, restaurants, and leisure, which are highly sensitive to economic cycles. XLY offers investors exposure to well-known brands like Amazon, Tesla, and Home Depot, making it a popular choice for those looking to invest in the consumer discretionary sector. The fund is managed by State Street Global Advisors and is one of the most liquid ETFs in its category, with a low expense ratio, making it cost-effective for long-term investors.
- Asset Class
-
Equity
- Industry
-
Broad Consumer Discretionary
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.88 %
- Currency Hedged
-
No
- Portfolio Turnover
-
26 %
- Dividend Date
-
Why Invest in the XLY ETF?
Potential Benefits
- Provides concentrated exposure to leading consumer discretionary companies, including e-commerce giants and innovative brands.
- Low expense ratio (0.10%) compared to many actively managed funds in the sector.
- High liquidity, with tight bid-ask spreads, making it easy to trade.
- Diversification across sub-industries like retail, media, and leisure.
- Historically strong performance during economic expansions when consumer spending rises.
- Transparent holdings, with daily disclosure of portfolio constituents.
Potential Risks
- Sensitive to economic downturns, as consumer discretionary spending often declines in recessions.
- Concentration risk, with top holdings like Amazon and Tesla making up a significant portion of the fund.
- Vulnerability to shifts in consumer preferences and disruptive technologies.
- Higher volatility compared to more defensive sectors like consumer staples or utilities.
- Regulatory risks, particularly for companies in media and online retail.
- Currency and geopolitical risks for multinational companies within the fund.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+1.5%
|
-3.6%
|
-6.6%
|
+8.6%
|
+2.1%
|
-2.8%
|
-1.0%
|
+0.4%
|
-6.4%
|
+2.6%
|
-
|
-
|
| 2025 |
+3.5%
|
-7.0%
|
-8.3%
|
-0.1%
|
+8.4%
|
+1.9%
|
+1.9%
|
+4.7%
|
+3.6%
|
+0.1%
|
-1.4%
|
+1.2%
|
| 2024 |
-4.4%
|
+7.9%
|
-0.1%
|
-4.5%
|
+0.2%
|
+3.9%
|
+2.8%
|
-0.2%
|
+7.3%
|
-1.7%
|
+12.9%
|
+1.1%
|
| 2023 |
+15.1%
|
-2.1%
|
+3.1%
|
-1.1%
|
+2.5%
|
+12.2%
|
+2.3%
|
-1.7%
|
-5.5%
|
-5.5%
|
+11.0%
|
+6.1%
|
| 2022 |
-9.5%
|
-4.1%
|
+4.4%
|
-12.0%
|
-5.1%
|
-10.8%
|
+18.4%
|
-4.5%
|
-8.2%
|
+1.1%
|
+1.5%
|
-11.4%
|
| 2021 |
+0.8%
|
-0.5%
|
+4.5%
|
+6.5%
|
-3.4%
|
+3.5%
|
+1.1%
|
+1.8%
|
-2.1%
|
+12.1%
|
+1.6%
|
+0.2%
|
| 2020 |
-0.1%
|
-7.6%
|
-14.9%
|
+18.9%
|
+6.5%
|
+3.1%
|
+7.3%
|
+9.6%
|
-1.9%
|
-2.7%
|
+10.0%
|
+2.4%
|
| 2019 |
+9.9%
|
+1.3%
|
+3.7%
|
+5.5%
|
-7.6%
|
+7.8%
|
+1.3%
|
-0.9%
|
+1.3%
|
+0.1%
|
+1.3%
|
+2.8%
|
| 2018 |
+9.2%
|
-3.5%
|
-2.4%
|
+2.4%
|
+2.0%
|
+3.6%
|
+1.8%
|
+5.1%
|
+0.5%
|
-10.1%
|
+2.5%
|
-7.9%
|
| 2017 |
+4.2%
|
+1.8%
|
+2.1%
|
+2.4%
|
+1.1%
|
-1.3%
|
+1.9%
|
-1.9%
|
+0.8%
|
+2.1%
|
+5.1%
|
+2.5%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AMZN
|
AMAZON.COM INC |
22.3 % |
|
TSLA
|
TESLA INC |
15.6 % |
|
HD
|
THE HOME DEPOT INC |
7.2 % |
|
MCD
|
MCDONALD'S CORP |
4.6 % |
|
BKNG
|
BOOKING HOLDINGS INC |
4.4 % |
|
TJX
|
TJX COMPANIES INC |
4.1 % |
|
LOW
|
LOWE'S COMPANIES INC |
3.6 % |
|
SBUX
|
STARBUCKS CORP |
2.9 % |
|
ORLY
|
O'REILLY AUTOMOTIVE INC |
2.2 % |
|
NKE
|
NIKE INC CLASS B |
2.0 % |
Top 10 holdings shown, out of 53 total holdings.
Related ETFs: XLY vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
XLY tracks the Consumer Discretionary Select Sector Index, which includes consumer discretionary stocks from the S&P 500. The index is market-cap weighted, meaning larger companies like Amazon and Tesla have a greater influence on performance. The fund holds common stocks of these companies and aims to replicate the index's performance through physical replication. Rebalancing occurs quarterly to align with index changes, ensuring the portfolio remains representative of the sector. XLY does not use derivatives or leverage, providing straightforward exposure to the consumer discretionary sector.
Frequently Asked Questions
What are the top holdings in XLY?
As of the latest data, XLY's top holdings include Amazon, Tesla, Home Depot, McDonald's, and Nike, with Amazon and Tesla comprising a significant portion of the fund.
Is XLY a good investment during economic recoveries?
Yes, XLY tends to perform well during economic recoveries when consumer confidence and discretionary spending increase.
How often does XLY rebalance its holdings?
XLY rebalances quarterly to match the composition of its underlying index, the Consumer Discretionary Select Sector Index.
Does XLY pay dividends?
Yes, XLY pays quarterly dividends, though yields are typically lower than more defensive sectors due to the growth-oriented nature of consumer discretionary stocks.
How does XLY differ from XLP (Consumer Staples ETF)?
XLY focuses on non-essential consumer goods and services (discretionary), while XLP invests in essential items like food and household products (staples). XLP is generally more defensive during market downturns.
Industry Overview
The Consumer Discretionary Select Sector SPDR Fund (XLY) provides targeted exposure to companies that rely on consumer spending for non-essential goods and services. This sector includes industries like retail, automotive, media, and hospitality, which tend to outperform during economic expansions but underperform during downturns. Investing in XLY allows investors to capitalize on trends like e-commerce growth, digital media consumption, and experiential spending. The fund's performance is closely tied to consumer confidence, disposable income levels, and broader economic health, making it a cyclical play within equity markets.
Alternative Comparison
Compared to Vanguard's Consumer Discretionary ETF (VCR), XLY offers a slightly lower expense ratio (0.10% vs. 0.10%) and greater liquidity, making it more suitable for active traders. Unlike the First Trust Consumer Discretionary AlphaDEX Fund (FXD), which uses a factor-based approach to select and weight holdings, XLY follows a traditional market-cap methodology, resulting in greater concentration in mega-cap stocks. XLY's focus on S&P 500 constituents differentiates it from broader consumer discretionary ETFs like IYC, which includes mid-cap stocks.
Issuer Overview
State Street Global Advisors (SSGA), the issuer of XLY, is one of the largest ETF providers globally, known for its SPDR ETF family. SSGA specializes in index-based investing, offering low-cost, transparent, and liquid investment solutions. With decades of experience in asset management, SSGA has built a reputation for reliability and innovation in the ETF space.
Conclusion
XLY is a core holding for investors seeking exposure to the consumer discretionary sector's growth potential. Its low cost, liquidity, and focus on industry leaders make it an attractive option for both tactical and long-term investors. However, its cyclical nature requires careful consideration of economic conditions and risk tolerance. For those bullish on consumer spending trends, XLY offers efficient access to this dynamic market segment.
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