Consumer Discretionary Select Sector SPDR® Fund (XLY)

Overview of US ETF Consumer Discretionary Select Sector SPDR® Fund (XLY)

Profile:

• XLY is an exchange-traded fund (ETF) that tracks the performance of the Consumer Discretionary Select Sector Index.
• This index comprises companies in the following sectors:
  • Automobile Manufacturers
  • Apparel Retail
  • Consumer Electronics
  • Consumer Services
  • Distributors
  • Household Durables
  • Internet & Direct Marketing Retail
  • Leisure Products
  • Restaurants
• XLY seeks to provide investment results that generally correspond to the price and yield performance of the Consumer Discretionary Select Sector Index.
• The ETF employs a passive management strategy, meaning it holds all the stocks in the index in the same proportions.

Objective:

• The primary investment goal of XLY is to track the performance of the Consumer Discretionary Select Sector Index.
• This makes it an attractive option for investors who want to gain exposure to the consumer discretionary sector without having to pick individual stocks.

Issuer:

• State Street Global Advisors (SSGA) issues XLY.
• SSGA is one of the world's largest asset management firms, with over $3.5 trillion in assets under management.

Market Share:

• XLY is the largest consumer discretionary sector ETF, with a market share of over 80%.

Total Net Assets:

• XLY has over $40 billion in assets under management.

Moat:

• XLY has a significant competitive advantage due to its size and liquidity.
• The ETF's large size allows it to negotiate lower fees with brokers and other market participants.
• Its high liquidity makes it easy for investors to buy and sell shares without affecting the price.

Financial Performance:

• XLY has outperformed the S&P 500 over the past 10 years, with an average annual return of 15.5%.
• The ETF has also outperformed its benchmark index, the Consumer Discretionary Select Sector Index, over the same period.

Growth Trajectory:

• The consumer discretionary sector is expected to grow at a healthy pace in the coming years, driven by rising consumer spending.
• This bodes well for XLY's future performance.

Liquidity:

• XLY is a very liquid ETF, with an average daily trading volume of over 10 million shares.
• The ETF's bid-ask spread is also relatively tight, making it easy for investors to buy and sell shares.

Market Dynamics:

• The consumer discretionary sector is sensitive to changes in economic conditions and consumer confidence.
• Investors should be aware of these risks when considering an investment in XLY.

Key Competitors:

• Consumer Discretionary Select Sector SPDR Fund (XLY)
• Vanguard Consumer Discretionary ETF (VCR)
• iShares US Consumer Discretionary Sector ETF (IYC)

Expense Ratio:

• XLY's expense ratio is 0.13%.

Investment Approach:

• XLY is a passively managed ETF that tracks the Consumer Discretionary Select Sector Index.
• As a result, the ETF holds all the stocks in the index in the same proportions.

Key Points:

• XLY is a large, liquid, and well-diversified ETF that provides investors with exposure to the consumer discretionary sector.
• The ETF has outperformed its benchmark index and the S&P 500 over the past 10 years.
• The expense ratio is low, and the ETF is very liquid.
• Investors should be aware of the risks associated with the consumer discretionary sector before investing in XLY.

Risks:

• The consumer discretionary sector is sensitive to changes in economic conditions and consumer confidence.
• This can lead to increased volatility and potential losses for investors.
• XLY is also subject to tracking error, which is the difference between the ETF's performance and the performance of its benchmark index.

Who Should Consider Investing:

• XLY is a good investment option for investors who want to gain exposure to the consumer discretionary sector.
• The ETF is a low-cost, convenient way to diversify a portfolio.
• However, investors should be aware of the risks involved before investing.

Fundamental Rating Based on AI:

Based on an AI-powered análise, XLY receives a 7 out of 10 for its fundamentals.

• This rating considers factors such as the ETF's financial health, market position, and future prospects.

Disclaimer:

• The information provided above is for informational purposes only and should not be considered investment advice.
• Always consult with a qualified financial advisor before making any investment decisions.

Resources:

• SPDR® S&P® Consumer Discretionary Select Sector UCITS ETF (XLYD)
• iShares Core S&P 500 ETF (IVV)
• Vanguard Consumer Discretionary ETF (VCR)