XLY - ETF AI Analysis

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Consumer Discretionary Select Sector SPDR Fund (XLY)

Rating:70Neutral

Price Target:―

XLY, the Consumer Discretionary Select Sector SPDR Fund, has a solid overall rating driven mainly by large positions in Amazon and Tesla, which benefit from strong financial performance and growth potential, especially in areas like cloud, advertising, and innovative autos. The fund is further supported by resilient consumer names like TJX, which shows robust sales growth and a bullish outlook, though weaker spots such as Starbucks, with high debt, margin pressure, and bearish trading signals, slightly weigh on the rating. The main risk is the heavy concentration in a few big consumer discretionary stocks, which can make the fund more sensitive to shifts in consumer spending and market sentiment toward this sector.

Positive Factors

Low Expense Ratio

The fund charges a relatively low fee, which helps investors keep more of their returns over time.

Large Asset Base

The ETF manages a sizable pool of assets, which generally supports good trading liquidity and tighter bid-ask spreads.

Strong Performers Among Top Holdings

Several major positions, including home improvement and restaurant names, have shown strong year-to-date performance, helping support the fund despite some weaker stocks.

Negative Factors

High Concentration in a Few Stocks

A large share of the portfolio is tied up in just a handful of companies, which increases the impact if any of those names struggle.

Mixed Performance of Key Holdings

Some of the largest positions, including major electric vehicle and travel companies, have shown weak recent performance, which has weighed on the ETF’s overall results.

Narrow Sector and Geographic Focus

The fund is heavily focused on U.S. consumer cyclical stocks, offering limited diversification across other sectors and regions.

XLY vs. SPDR S&P 500 ETF (SPY)

AUM22.34B

RegionNorth America

Expense Ratio0.08%

Beta1.11

IssuerSPDR

Inception DateDec 16, 1998

Dividend Yield0.81%

Asset ClassEquity

Index TrackedS&P Consumer Discretionary Select Sector

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume13,050,991

30 Day Avg. Volume10,507,828

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

136.41

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering49

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

XLY Summary

XLY is an ETF that tracks the S&P Consumer Discretionary Select Sector index, focusing on U.S. companies that benefit when people spend more on non‑essential items like shopping, travel, and dining out. It holds well-known names such as Amazon and Tesla, along with major retailers and restaurant chains. Someone might invest in XLY if they believe the U.S. economy and consumer spending will grow, and they want an easy way to spread their money across many leading consumer brands. A key risk is that the fund can rise or fall sharply with economic cycles and changes in consumer confidence.

How much will it cost me?The Consumer Discretionary Select Sector SPDR Fund (XLY) has an expense ratio of 0.08%, which means you’ll pay $0.80 per year for every $1,000 invested. This is lower than average because it’s a passively managed fund that tracks an index, keeping costs down.

What would affect this ETF?The Consumer Discretionary Select Sector SPDR Fund (XLY) could benefit from strong consumer confidence and economic growth, as these factors often drive higher spending in sectors like retail, automotive, and leisure, which are heavily represented in the fund. However, rising interest rates or economic slowdowns could negatively impact consumer spending, potentially affecting top holdings like Amazon and Tesla, which rely on discretionary purchases. Additionally, regulatory changes or supply chain disruptions in the U.S. could pose risks to the fund's performance.

XLY Top 10 Holdings

XLY is heavily driven by two giants, Amazon and Tesla, and both have been losing steam lately, acting as a drag on the fund despite their outsized influence. Balancing that weakness, steadier names like Home Depot, Lowe’s, and TJX are quietly rising, helped by resilient U.S. consumer spending on homes and value-focused retail. McDonald’s adds a defensive tilt with its steady global footprint, but overall this is a U.S.-centric, consumer-discretionary story where a few big tech-leaning names call the shots and the rest of the portfolio works to smooth out the ride.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AMZN	Amazon	22.13%	$5.03B	$2.35T	9.09%	71 Outperform
TSLA	Tesla	19.23%	$4.37B	$1.52T	53.94%	73 Outperform
HD	Home Depot	6.19%	$1.41B	$360.06B	-5.25%	66 Neutral
MCD	McDonald's	4.94%	$1.12B	$232.62B	5.50%	65 Neutral
TJX	TJX Companies	4.24%	$964.45M	$178.71B	33.38%	79 Outperform
LOW	Lowe's	3.42%	$777.15M	$142.88B	4.60%	69 Neutral
BKNG	Booking Holdings	3.23%	$734.67M	$146.12B	-1.76%	63 Neutral
SBUX	Starbucks	2.60%	$591.81M	$112.44B	-6.43%	56 Neutral
ORLY	O'Reilly Auto	1.88%	$426.38M	$79.12B	6.34%	66 Neutral
MAR	Marriott International	1.76%	$400.93M	$88.25B	26.81%	62 Neutral

XLY Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

119.72

Negative

100DMA

118.80

Negative

200DMA

115.47

Positive

Market Momentum

MACD

-1.06

Negative

RSI

45.78

Neutral

STOCH

67.64

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLY, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 116.68, equal to the 50-day MA of 119.72, and equal to the 200-day MA of 115.47, indicating a neutral trend. The MACD of -1.06 indicates Negative momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 67.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XLY.

XLY Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
XLY	―	―	$22.34B	0.08%	70 Neutral
VGT	―	―	$110.58B	0.09%	74 Outperform
XLK	―	―	$88.05B	0.08%	76 Outperform
XLF	―	―	$49.32B	0.08%	72 Outperform
XLV	―	―	$42.40B	0.08%	73 Outperform
XLE	―	―	$39.39B	0.08%	74 Outperform

Performance Comparison

XLY

Consumer Discretionary Select Sector SPDR Fund

116.55

14.60

14.32%

VGT

Vanguard Information Technology ETF

―

XLK

Technology Select Sector SPDR Fund

―

XLF

Financial Select Sector SPDR Fund

―

XLV

Health Care Select Sector SPDR Fund

―

XLE

Energy Select Sector SPDR Fund

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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