iShares US Consumer Discretionary ETF (IYC)IYC

iShares US Consumer Discretionary ETF (IYC) Overview

Profile:

• Primary Focus: Tracks the performance of US companies in the consumer discretionary sector, including those involved in retail, automobiles, and leisure activities.
• Asset Allocation: Invests in large, mid, and small-cap stocks across various consumer discretionary sub-industries.
• Investment Strategy: Passively tracks the S&P Consumer Discretionary Select Sector Index.

Objective:

• Provide investors with broad exposure to the US consumer discretionary sector and the potential for long-term capital appreciation.

Issuer:

• BlackRock: One of the world's leading asset managers, known for its strong reputation, expansive resources, and experienced management team.

Market Share:

• 73.87% (as of Nov 2023) within the US Consumer Discretionary sector ETF category.

Total Net Assets:

• $37.71 billion (as of Nov 2023)

Moat:

• Large and established issuer with a strong track record.
• Low expense ratio compared to competitors.
• High liquidity and tight bid-ask spread.

Financial Performance:

• Historical Performance:
  • 1 year: 18.29%
  • 3 years: 10.92%
  • 5 years: 14.51%
• Benchmark Comparison: Outperformed the S&P 500 Index in the past year and three years.

Growth Trajectory:

• Consumer discretionary spending is expected to grow in the coming years, driven by factors such as rising disposable income and increasing consumer confidence.

Liquidity:

• Average Trading Volume: 3.63 million shares (as of Nov 2023)
• Bid-Ask Spread: 0.02%

Market Dynamics:

• Economic growth, consumer confidence, interest rates, and inflation are key factors affecting the consumer discretionary sector.

Competitors:

• SPDR S&P Retail ETF (XRT) - 13.72% market share
• VanEck Retail ETF (RTH) - 7.79% market share

Expense Ratio:

• 0.41%

Investment Approach and Strategy:

• Strategy: Tracks the S&P Consumer Discretionary Select Sector Index.
• Composition: Holds approximately 272 stocks, with top holdings including Amazon, Tesla, and Home Depot.

Key Points:

• Broad exposure to the US consumer discretionary sector.
• Low expense ratio.
• High liquidity.
• Strong track record compared to the benchmark.

Risks:

• Volatility: Consumer discretionary stocks tend to be more volatile than the broader market.
• Market Risk: The ETF's performance is tied to the performance of the underlying consumer discretionary sector.
• Economic Risk: Economic downturns can negatively impact consumer spending and, consequently, the ETF's performance.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to the US consumer discretionary sector.
• Investors with a moderate risk tolerance.

Fundamental Rating Based on AI:

7/10

Justification:

• Strong financial performance and track record.
• Large and established issuer with a strong reputation.
• Low expense ratio and high liquidity.
• Positive growth trajectory for the consumer discretionary sector.

Resources:

• iShares US Consumer Discretionary ETF website: https://www.ishares.com/us/products/239634/ishares-us-consumer-discretionary-sector-etf
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/XLY
• Morningstar: https://www.morningstar.com/etfs/xnas/iyd/quote.html

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.