XLY - ETF AI Analysis
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Consumer Discretionary Select Sector SPDR Fund (XLY)
XLY’s rating suggests it is a solid but not risk-free way to invest in major consumer discretionary companies. The fund is heavily influenced by Amazon and Tesla, whose strong financial performance and growth potential support the rating, while TJX adds stability with robust sales growth and a bullish outlook. On the risk side, several holdings such as Starbucks and Booking face high leverage, bearish technical trends, or rich valuations, and the fund’s concentration in consumer-focused names means it is sensitive to economic slowdowns in that sector.
XLY vs. SPDR S&P 500 ETF (SPY)
- AUM
- 21.79B
- Region
- North America
- Expense Ratio
- 0.08%
- Beta
- 1.12
- Issuer
- SPDR
- Inception Date
- Dec 16, 1998
- Dividend Yield
- 0.81%
- Asset Class
- Equity
- Index Tracked
- S&P Consumer Discretionary Select Sector
XLY Summary
XLY is an exchange-traded fund that follows 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 leisure. It holds well-known names such as Amazon and Tesla, along with major retailers and restaurants. Someone might invest in XLY to tap into potential growth when the economy is strong and consumers feel confident, while also getting diversification across many consumer-focused companies. A key risk is that these stocks can fall sharply during economic slowdowns, so the fund can go up and down with changes in consumer spending.
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 riding on the shoulders of two giants: Amazon and Tesla dominate the fund, giving it a clear tilt toward U.S. e-commerce and electric vehicles. Amazon has been mixed lately, with earlier gains losing some steam, while Tesla’s choppy performance has been a headwind. Home Depot and Lowe’s, both lagging, add pressure from the home improvement side, and McDonald’s has been soft despite its global footprint. Overall, this is a U.S.-centric consumer play, heavily concentrated in a few big, volatile names that set the tone for returns.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 AMZN | Amazon | 23.45% | $5.16B | $2.83T | 21.32% | 71Outperform |
 TSLA | Tesla | 17.45% | $3.84B | $1.45T | -16.48% | 73Outperform |
 HD | Home Depot | 5.20% | $1.14B | $309.16B | -18.97% | 66Neutral |
 TJX | TJX Companies | 4.32% | $948.73M | $162.09B | 2.55% | 79Outperform |
 MCD | McDonald's | 4.22% | $928.73M | $171.72B | -19.90% | 65Neutral |
 BKNG | Booking Holdings | 3.24% | $712.03M | $123.17B | -20.30% | 63Neutral |
 SBUX | Starbucks | 2.96% | $650.24M | $113.28B | 17.56% | 56Neutral |
 LOW | Lowe's | 2.91% | $640.23M | $109.92B | -18.05% | 69Neutral |
 MAR | Marriott International | 2.21% | $486.87M | $103.61B | 52.81% | 62Neutral |
 HLT | Hilton Worldwide Holdings | 2.06% | $453.88M | $77.88B | 37.64% | 67Neutral |
XLY Technical Analysis
Price Trends
Market Momentum
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 115.50 is above the 20-day moving average (MA) of 111.37, above the 50-day MA of 113.53, and above the 200-day MA of 115.43, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 62.75 is Neutral, neither overbought nor oversold. The STOCH value of 75.75 is Neutral, 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 | $115.50 | $126.00(9.09% Upside) | $21.79B | 0.08% | 70Neutral |
 VGT | $120.20 | $155.09(29.03% Upside) | $149.00B | 0.09% | 74Outperform |
 XLK | $185.44 | $236.40(27.48% Upside) | $122.64B | 0.08% | 75Outperform |
 XLF | $55.72 | $62.90(12.88% Upside) | $51.75B | 0.08% | 72Outperform |
 XLV | $179.82 | $192.64(7.13% Upside) | $46.47B | 0.08% | 73Outperform |
 XLE | $67.97 | $72.26(6.31% Upside) | $44.80B | 0.08% | 73Outperform |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| XLY | Consumer Discretionary Select Sector SPDR Fund | 115.50 | -2.71 | -2.30% | |
| VGT | Vanguard Information Technology ETF | 120.20 | 25.34 | 26.71% | |
| XLK | Technology Select Sector SPDR Fund | 185.44 | 41.63 | 28.95% | |
| XLF | Financial Select Sector SPDR Fund | 55.72 | 4.00 | 7.73% | |
| XLV | Health Care Select Sector SPDR Fund | 179.82 | 36.18 | 25.19% | |
| XLE | Energy Select Sector SPDR Fund | 67.97 | 24.72 | 57.15% |
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.