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XLY - ETF AI Analysis

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XLY

Consumer Discretionary Select Sector SPDR Fund (NYSE Arca:XLY)

Rating:70Neutral
Price Target:
XLY, the Consumer Discretionary Select Sector SPDR Fund, has a solid overall rating driven largely by its big positions in Amazon and Tesla, which benefit from strong financial performance and growth potential, even though both trade at premium valuations. The fund also gets a boost from high-quality retail names like TJX and Ross Stores, which show robust sales growth, positive earnings calls, and supportive technical trends. On the risk side, several holdings such as Starbucks, Booking Holdings, and Marriott face challenges from high leverage, weaker technical signals, and rich valuations, and the fund is concentrated in the consumer discretionary sector, making it sensitive to economic cycles and shifts in consumer spending.
Positive Factors
Low Expense Ratio
The fund charges relatively low fees, which helps investors keep more of any returns over time.
Strong Performance From Key Holding
Amazon, the largest position, has shown strong gains this year, providing important support to the ETF’s overall results.
Multiple Solid Consumer Names
Several well-known consumer companies like Starbucks, Marriott, and Ross Stores have delivered strong or steady performance, helping balance weaker holdings in the portfolio.
Negative Factors
Heavy Concentration in a Few Stocks
A large share of the fund is tied up in just a handful of companies, which increases the impact if any of those stocks perform poorly.
Mixed Recent Performance
The ETF’s returns over the year and recent months have been weak, showing that the fund has struggled in the current market environment.
High Exposure to U.S. Consumer Cyclical Sector
Almost all of the fund is invested in U.S. consumer cyclical companies, making it sensitive to changes in consumer spending and the U.S. economy.

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

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 heavily driven by two giants, Amazon and Tesla, so when these names wobble—as they have recently—the whole fund feels the shake. Amazon’s longer-term uptrend is still helping, but its short-term slip has taken some wind out of the ETF’s sails, while Tesla’s weaker stretch is clearly dragging. Offsetting that, steady climbers like TJX and a resurgent Starbucks, plus strong travel names like Marriott and Hilton, are giving the portfolio a lift. Overall, it’s a U.S.-focused bet on consumer spending, with a big tilt toward a few dominant discretionary leaders.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Amazon23.86%$5.36B$2.66T7.25%
71
Outperform
Tesla17.66%$3.97B$1.42T12.46%
73
Outperform
Home Depot5.63%$1.27B$330.64B-11.89%
66
Neutral
McDonald's4.21%$946.37M$187.51B-11.59%
65
Neutral
TJX Companies4.13%$927.73M$171.28B22.70%
79
Outperform
Booking Holdings3.54%$796.11M$139.01B-21.81%
63
Neutral
Starbucks3.04%$683.90M$119.04B7.75%
56
Neutral
Lowe's2.92%$656.40M$114.11B-10.98%
69
Neutral
Marriott International2.05%$459.80M$96.99B34.48%
62
Neutral
Ross Stores1.93%$434.89M$75.64B73.70%
80
Outperform

XLY Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
116.78
Negative
100DMA
115.33
Negative
200DMA
116.89
Negative
Market Momentum
MACD
-0.42
Positive
RSI
42.32
Neutral
STOCH
8.51
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLY, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 116.12, equal to the 50-day MA of 116.78, and equal to the 200-day MA of 116.89, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 42.32 is Neutral, neither overbought nor oversold. The STOCH value of 8.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XLY.

XLY Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$22.53B0.08%
70
Neutral
$138.69B0.09%
74
Outperform
$114.79B0.08%
75
Outperform
$55.15B0.08%
72
Outperform
$41.47B0.08%
73
Outperform
$39.48B0.13%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XLY
Consumer Discretionary Select Sector SPDR Fund
114.02
1.62
1.44%
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.
DisclaimerThis 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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