XLY - ETF AI Analysis

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Consumer Discretionary Select Sector SPDR Fund (XLY)

Rating:70Neutral

Price Target:―

The Consumer Discretionary Select Sector SPDR Fund (XLY) has a solid overall rating, reflecting its strong exposure to leading companies in the consumer discretionary sector. Amazon and Tesla, the fund's largest holdings, significantly boost its rating due to their robust financial performance and growth potential, despite valuation concerns. However, weaker contributions from holdings like Starbucks and Booking Holdings, which face challenges such as high leverage and bearish technical indicators, slightly weigh on the fund's overall score. A key risk for XLY is its heavy concentration in just two companies, Amazon and Tesla, which together make up nearly half of the portfolio, making the fund more vulnerable to their individual performance fluctuations.

Positive Factors

Strong Top Holdings

Several major positions, such as Tesla, TJX Companies, and DoorDash, have delivered strong year-to-date performance, supporting the fund’s overall returns.

Low Expense Ratio

The ETF has a very low expense ratio, making it cost-effective compared to many other funds.

Large Asset Base

With significant assets under management, the fund benefits from stability and investor confidence.

Negative Factors

High Concentration in Top Holdings

Amazon and Tesla alone make up over 40% of the portfolio, increasing risk if either stock underperforms.

Sector Overexposure

The ETF is heavily focused on consumer cyclical stocks, which are sensitive to economic downturns.

Limited Geographic Diversification

Nearly all holdings are U.S.-based, offering little exposure to international markets.

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

AUM24.53B

RegionNorth America

Expense Ratio0.08%

Beta1.10

IssuerSPDR

Inception DateDec 16, 1998

Dividend Yield0.76%

Asset ClassEquity

Index TrackedS&P Consumer Discretionary Select Sector

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume10,663,521

30 Day Avg. Volume11,085,674

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

133.85

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering49

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

XLY Summary

The Consumer Discretionary Select Sector SPDR Fund (Ticker: XLY) is an ETF that focuses on companies in the consumer discretionary sector, which includes businesses influenced by consumer spending, like retail, automotive, and leisure. It tracks the S&P Consumer Discretionary Select Sector index and includes well-known companies such as Amazon and Tesla. Investors might consider XLY if they want to benefit from consumer spending trends and diversify their portfolio with growth-oriented industries. However, it’s important to note that this ETF’s performance can be heavily impacted by economic cycles, as consumer spending tends to rise and fall with the overall economy.

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

The Consumer Discretionary Select Sector SPDR Fund (XLY) leans heavily on consumer-focused giants like Tesla and Amazon, which together dominate the fund’s holdings. Tesla is rising steadily, fueled by strong earnings and growth momentum, while Amazon’s performance has been mixed, with short-term weakness offsetting gains in its AWS and advertising segments. Home Depot and Nike are dragging the fund, as both face bearish trends and market challenges. With nearly all its exposure in U.S. consumer cyclical stocks, XLY is a concentrated bet on consumer spending, but its reliance on a few big names makes it vulnerable to their ups and downs.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AMZN	Amazon	23.58%	$5.85B	$2.64T	12.82%	71 Outperform
TSLA	Tesla	19.69%	$4.89B	$1.48T	11.32%	73 Outperform
HD	Home Depot	5.87%	$1.46B	$372.96B	-3.66%	66 Neutral
MCD	McDonald's	4.28%	$1.06B	$218.86B	8.15%	65 Neutral
BKNG	Booking Holdings	3.90%	$967.78M	$177.03B	13.17%	63 Neutral
TJX	TJX Companies	3.87%	$960.12M	$175.24B	31.04%	79 Outperform
LOW	Lowe's	3.30%	$819.22M	$149.89B	8.94%	69 Neutral
SBUX	Starbucks	2.23%	$552.40M	$101.07B	-3.80%	56 Neutral
DASH	DoorDash	1.77%	$440.52M	$92.91B	27.62%	76 Outperform
ORLY	O'Reilly Auto	1.74%	$432.84M	$79.18B	18.50%	66 Neutral

XLY Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

118.91

Positive

100DMA

118.39

Positive

200DMA

111.63

Positive

Market Momentum

MACD

1.11

Negative

RSI

65.35

Neutral

STOCH

95.68

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLY, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 121.49, equal to the 50-day MA of 118.91, and equal to the 200-day MA of 111.63, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 65.35 is Neutral, neither overbought nor oversold. The STOCH value of 95.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLY.

XLY Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
XLY	―	―	$24.53B	0.08%	―
VGT	―	―	$114.77B	0.09%	―
XLK	―	―	$92.70B	0.08%	―
XLF	―	―	$54.94B	0.08%	―
XLV	―	―	$41.69B	0.08%	―
VNQ	―	―	$33.82B	0.13%	―

Performance Comparison

XLY

Consumer Discretionary Select Sector SPDR Fund

124.52

14.65

13.33%

VGT

Vanguard Information Technology ETF

―

XLK

Technology Select Sector SPDR Fund

―

XLF

Financial Select Sector SPDR Fund

―

XLV

Health Care Select Sector SPDR Fund

―

VNQ

Vanguard Real Estate ETF

―

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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