Exploring the High-End Retail Market with the Consumer Discretionary Select Sector SPDR Fund (XLY)
Denver, CO
|
August 12, 2024 11:30 AM Eastern Daylight Time
For those interested in the luxury consumer market, the Consumer Discretionary Select Sector SPDR Fund (XLY) offers a pathway for investors seeking to diversify their exposure to this sector.
XLY encompasses an investment focus on the consumer discretionary sector, covering a wide array of non-essential goods and services — including advanced electronics, international travel, dining, hotels, and consumer durables.
A Portfolio Reflecting Consumer Choices
The core of XLY's strategy is its holdings*, which comprise leading companies that are at the forefront of their industries. These companies exemplify the fund's focus to capture diverse consumer spending habits, especially around luxury and discretionary purchases. Top holdings include:
Amazon.com (22.24%): Dominating the e-commerce space, Amazon offers a broad selection of products and services, catering to various consumer needs.
Tesla (17.12%): Redefining luxury in the automotive sector, Tesla stands out for its innovative electric vehicles.
Home Depot (9.70%): A leader in home improvement retail, Home Depot caters to both individuals looking to enhance their homes and professional contractors.
McDonald's (4.47%): Recognized worldwide, McDonald's adapts its offerings to meet a wide range of tastes and preferences.
Booking Holdings (3.39%): A travel technology company that owns and operates numerous travel fare aggregators and search engines.
A Strategic Focus
XLY has accumulated over $19 billion in assets under management, maintaining an investor-friendly expense ratio of only 0.09%**. The fund aims to replicate the performance of the Consumer Discretionary Select Sector Index, offering investors a broad view of the consumer discretionary sector and enabling them to partake in the sector's dynamics.
Adaptability in a Changing Economic Landscape
As the global economy navigates through various phases of adjustment, the consumer discretionary sector could be of particular interest. XLY presents itself as a diversified and pragmatic choice for investors aiming to engage with the high-end retail market.
The Consumer Discretionary Select Sector SPDR Fund (XLY) represents an approachable option for investors interested in the multifaceted world of luxury consumer spending, without the complexity of analyzing individual companies. It offers a streamlined way to consider the various dimensions of discretionary consumer spending, making it a practical selection for those exploring investment opportunities in the consumer discretionary sector.
DISCLAIMER: This is a work of research and should not be taken as investment or financial advice. Therefore, Select Sector SPDRs or the publisher is not liable for any decision made based on the publication.
About the Company:
Select Sector SPDR ETFs offer flexibility and customization opportunities. Many investors have similar outlooks, but no two are exactly alike. Select Sector SPDR ETFs let investors select the sectors that best meet their investment goals.
*Holdings, Weightings & Assets as of 7/31/24 subject to change
**Ordinary brokerage fees apply
DISCLOSURES
The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Index figures do not reflect any fees, expenses or taxes. An investor should consider investment objectives, risks, fees and expenses before investing.
One may not invest directly in an index.
Transparent ETFs provide daily disclosure of portfolio holdings and weightings
All ETFs are subject to risk, including loss of principal. Sector ETF products are also subject to sector risk and nondiversification risk, which generally will result in greater price fluctuations than the overall market. Diversification does not eliminate risk.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF (732-8673) or visit www.sectorspdrs.com. Read the prospectus carefully before investing.
ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is distributor for the Select Sector SPDR Trust.
Media Contact:
Company: Select Sector SPDRs
Contact: Dan Dolan*
Address: 1290 Broadway, Suite 1000, Denver, CO 80203
Country: United States
Email: dan.dolan@sectorspdrs.com
Website: https://www.sectorspdrs.com/
*Dan Dolan is a Registered Representative of ALPS Portfolio Solutions Distributor, Inc. ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is the distributor for the Select Sector SPDR Trust.
SEL007727 EXP 10/31/24
Contact Details
Dan Dolan
+1 203-935-8103
Company Website
