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XLY - ETF AI Analysis

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XLY

Consumer Discretionary Select Sector SPDR Fund (XLY)

Rating:70Neutral
Price Target:
XLY, the Consumer Discretionary Select Sector SPDR Fund, has a solid overall rating that reflects its exposure to leading consumer-focused companies with generally strong financial performance and growth prospects. Heavyweights like Amazon and Tesla support the fund’s quality through robust earnings, growth in key business segments, and positive long-term outlooks, while TJX adds further strength with strong sales, profitability, and a bullish technical picture. On the risk side, several holdings such as Starbucks and Booking face issues like high leverage, bearish technical trends, and rich valuations, and the fund is concentrated in the consumer discretionary sector, which can be more sensitive to economic slowdowns.
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)

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, with Amazon doing most of the heavy lifting as its stock keeps rising, while Tesla is clearly losing steam and acting as a drag. Home Depot and Lowe’s form a solid home-improvement duo, with both names trending higher and helping offset some of Tesla’s weakness. On the consumer side, Starbucks and TJX are adding a steadier, more defensive flavor, with generally positive momentum. Overall, this is a U.S.-only, consumer-discretionary story, concentrated in a few big retail and e-commerce names.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Amazon23.66%$5.62B$2.56T0.68%
71
Outperform
Tesla18.93%$4.50B$1.62T6.38%
73
Outperform
Home Depot5.98%$1.42B$372.91B-9.08%
66
Neutral
McDonald's4.51%$1.07B$224.33B9.11%
65
Neutral
Booking Holdings3.73%$885.60M$161.23B5.58%
63
Neutral
TJX Companies3.71%$881.83M$166.36B20.05%
79
Outperform
Lowe's3.38%$803.46M$149.81B2.70%
69
Neutral
Starbucks2.41%$573.47M$104.76B-14.61%
56
Neutral
Royal Caribbean1.98%$471.47M$88.54B21.77%
67
Neutral
O'Reilly Auto1.89%$448.32M$83.07B14.04%
66
Neutral

XLY Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
119.96
Positive
100DMA
119.21
Positive
200DMA
113.37
Positive
Market Momentum
MACD
0.33
Positive
RSI
48.60
Neutral
STOCH
51.70
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 121.97, equal to the 50-day MA of 119.96, and equal to the 200-day MA of 113.37, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 51.70 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
$23.89B0.08%
$114.46B0.09%
$93.56B0.08%
$55.43B0.08%
$40.75B0.08%
$34.94B0.13%
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XLY
Consumer Discretionary Select Sector SPDR Fund
121.17
7.60
6.69%
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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