Don't Generalize and Get to Know Your ETFs | Page 2 of 2 | ETF Trends

XLY’s top holdings include Amazon (NasdaqGS: AMZN) 7.2%, Comcast Corp. (NasdaqGS: CMCSA) 6.9% and Walt Disney (NYSE: DIS) 6.0%.

Additionally, the two ETFs have slightly different weighting methodologies. XRT follows a more equal-weight methodology that spreads out its allocation equally among component stocks, whereas XLY follows a more traditional capitalization-weighted methodology that leans toward larger companies. [What Are ‘Smart-Beta,’ Factor-Based Index ETFs?]

Investors should not generalize their ETF investments. Instead, people should take the time to do some due diligence before diving into any investment decision.

For more information on ETFs, visit our ETF 101 category.