5 Best Consumer Discretionary Sector ETFs to Own Long-Term 1.7

VCR vs XLY vs IYC vs PEJ vs XHB

  • Asset Class: Consumer Discretionary Sector

  • Oldest ETF back tested: The Consumer Discretionary Select Sector SPDR® Fund (XLY)

  • Correlation to U.S. Markets: 0.88

  • Long-Term Performance: 9.29% CAGR

  • S&P 500 Performance: 7.80% CAGR

  • Back test timeframe: January 1999 – March 2024

  • Number of ETFs available in this asset class: 32

  • Number of ETFs in this asset class that are 10-years old or older: 16

XLY vs SPY: January 1999 – March 2024

XLY vs SPY: December 22, 1998 – April 29, 2024

The Deep Value ETF Accumulator rankings for the 16 oldest Consumer Discretionary sector ETFs:

The 5 top ranked Consumer Discretionary sector ETFs head-to-head comparisons:

VCR vs XLY vs IYC vs PEJ vs XHB: March 2006 – March 2024

VCR vs XLY vs IYC vs PEJ vs XHB: February 6, 2006 – April 29, 2024

Stated objectives of 5 top ranked Consumer Discretionary sector ETFs:

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.

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 specialty retail; broadline retail; hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; automobile 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. The companies included in each Select Sector Index are selected on the basis of general industry classification from a universe of companies defined by the Standard & Poor’s 500 Composite Stock® Index (“S&P 500®”). The eleven Select Sector Indexes (each a “Select Sector Index”) upon which the Select Sector SPDR Funds are based together comprise all of the companies in the S&P 500.

IYC – The iShares U.S. Consumer Discretionary ETF seeks to track the investment results of an index composed of U.S. equities in the consumer discretionary sector. Exposure to U.S. companies that distribute food, drugs, general retail items, and media. Targeted access to domestic consumer discretionary stocks. Use to express a sector view.

PEJ – The Invesco Leisure and Entertainment ETF (Fund) is based on the Dynamic Leisure & Entertainment Intellidex℠ Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The 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 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.

XHB – The SPDR® S&P® Homebuilders ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P® Homebuilders Select Industry™ Index (the “Index”). Seeks to provide exposure to the homebuilders segment of the S&P TMI, comprising the Homebuilding sub-industry, and may include exposure to the Building Products, Home Furnishings, Home Improvement Retail, Homefurnishing Retail, and Household Appliances sub-industries. Seeks to track a modified equal weighted index which provides the potential for unconcentrated industry exposure across large, mid and small cap stocks
Allows investors to take strategic or tactical positions at a more targeted level than traditional sector based investing. The S&P Homebuilders Select Industry® Index represents the homebuilders segment of the S&P Total Market Index (“S&P TMI”). The S&P TMI is designed to track the broad U.S. equity market. The homebuilders segment of the S&P TMI comprises the Homebuilding sub-industry. The Index is modified equal weighted.

Thank you for taking time to read this article. If you found it useful, please share it with a friend.

Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator

Previous Deep Value ETF Accumulator article on Consumer Discretionary sector ETFs:

5 Best Consumer Discretionary Sector ETFs to Own Long-Term: VCR vs XLY vs IYC vc PEJ vs PBS 1.5

Disclosure: We currently own shares of XLY and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform your 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 Google AdSense.

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