As we noted last week, XLP is the best-performing SPDR in August and the second-best in September. Long-term investors, a group that often has some exposure to the staples sector, should also note XLP is May’s best SPD. XLY, which includes stocks such as Amazon (NasdaqGM: AMZN), McDonald’s (NYSE: MCD) and Ford (NYSE: F) is the second-best SPDR in October.
XLP’s top-holdings include Dow components Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO) and Wal-Mart (NYSE: WMT). XLP and XLY are both highly correlated to the S&P 500. In fact, over the past three years, XLY has a correlation of 0.98 to the S&P 500, tops among any of the nine SPDRs, according to State Street data.
Consumer Discretionary Select Sector SPDR
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Amazon, Coca-Cola and P&G.