What is an ETF? -- Know What Your Fund Holds | Page 2 of 2 | ETF Trends

VCR gives 19% of the fund’s assets to the stocks Disney (NYSE: DIS), Comcast (NYSE: CMCSA), Walt Disney (NYSE: DIS), Ford (NYSE: F) and Nike (NYSE: NKE), and spreads the rest out among 365 other shares. XLY puts about 26% in the aforementioned stocks and holds 75 other companies, reports Rosenbluth. [Race to the Bottom: ETFs Cut Fees]

And performance? VCR is up 10.5% as of Monday, while XLY is up 9.3%. VCR does weight more to small and mid-cap shares, giving the fund a riskier appeal than a pure U.S. large-cap focus.

“Unlike the three sizable ETFs tied to the S&P 500 Index, most sector-focused ETF products are not identical in their holdings because they are tied to indices with distinct constructs. As such, we strongly believe that  ETFs need to be fully analyzed to understand what is inside,” Rosenbluth said.

Tisha Guerrero contributed to this article.