Sturdiness from the media sub-sector is also serving as a positive catalyst for discretionary ETFs. Rupert Murdoch’s 21st Century Fox (NasdaqGS: FOXA), Time Warner (NYSE: TWX) and Dow component Walt Disney (NYSE: DIS) each delivered solid earnings reports this week.
Media is the largest industry weight in XLY with an allocation of 30.5%, about 1,350 basis points above the ETF’s weight to specialty retail stocks. Disney, Time Warner and Fox combine for 13.2% of XLY’s weight. The PowerShares Dynamic Media Portfolio (NYSEArca: PBS) has added $5.1 million in the current quarter. Time Warner and Disney combine for over 10% of PBS. [Tune Into the Media ETF]
XLY is off 1.8% this year, making it the worst of the nine sector SPDRs. The fund has dragged lower by a tumble in shares of Amazon (NYSE: AMZN) as well as Home Depot (NYSE: HD) and McDonald’s (NYSE: MCD), two the worst performers in the Dow Jones Industrial Average.
Consumer Discretionary Select Sector SPDR
Tom Lydon’s clients own shares of EEM.