Does the Consumer Discretionary sector have a history of good long-term returns?
The oldest available Consumer Discretionary sector ETF is the Consumer Discretionary Select Sector SPDR® Fund (XLY). Its’ inception date was 12/16/1998.
XLY vs S&P500 index fund: January 1999 – June 2019
Source: https://www.portfoliovisualizer.com/
XLY vs SPY: December 22, 1998 – July 28, 2019
Source: https://www.koyfin.com/home
There are 28 ETFs available in the Consumer Cyclical category. 14 of these ETFs have inception dates prior to July 28, 2009. Let’s see how they rank.
Source: https://www.morningstar.com/
XLY vs IYC vs VCR vs PEJ: July 2005 – June 2019
Source: https://www.portfoliovisualizer.com/
XLY vs IYC vs VCR vs PEJ vs SPY: June 23, 2005 – July 28, 2019
Source: https://www.koyfin.com/home
Top 4 performing fund’s product details:
XLY – The Consumer Discretionary Select Sector SPDR® Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Consumer Discretionary Select Sector Index (the “Index”). The Index seeks to provide an effective representation of the consumer discretionary sector of the S&P 500 Index. Seeks to provide precise exposure to companies in retail (specialty, multiline, internet and direct marketing); hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services. Allows investors to take strategic or tactical positions at a more targeted level than traditional style based investing.
IYC – The iShares U.S. Consumer Services ETF seeks to track the investment results of an index composed of U.S. equities in the consumer services sector. Exposure to U.S. companies that distribute food, drugs, general retail items, and media. Targeted access to domestic consumer services stocks. Use to express a sector view.
VCR – Vanguard Consumer Discretionary ETF. Seeks to track the performance of a benchmark index that measures the investment return of stocks in the consumer discretionary sector. Passively managed, using a full-replication strategy when possible and a sampling strategy if regulatory constraints dictate. Includes stocks of companies that manufacture products and provide services that consumers purchase on a discretionary basis.
PEJ – The Invesco Dynamic Leisure and Entertainment ETF (Fund) is based on the Dynamic Leisure & Entertainment Intellidex℠ Index (Intellidex Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Intellidex Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Underlying Intellidex Index is comprised of common stocks of 30 US leisure and entertainment companies. These are companies that are principally engaged in the design, production or distribution of goods or services in the leisure and entertainment industries. The Fund and the Index are rebalanced and reconstituted quarterly in February, May, August and November.
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Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator article on the Consumer Discretionary sector: SEPTEMBER 17, 2018 Best Long-Term Performance Consumer Discretionary ETFs (Consumer Cyclical) 1.1
Disclosure: We currently own shares of XLY, and we intend to purchase more shares in the future. I am not a professional investment advisor. Please perform you own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.