Although broader small-cap indexes have lagged their large-cap counterparts over the past year, PSCD is up 17.2% compared with a 9.4% gain for the Russell 2000. PSCD has also outpaced the Vanguard Consumer Discretionary ETF (NYSEArca: VCR) by 70 basis points over that period.
As its industry weights indicate, PSCD is much more than a play on the housing market. Rather, the ETF is a bonafide play on eating out with a 28.2% weight to restaurants and hotels. Buffalo Wild Wings (NasdaqGS: BWLD) and Jack in the Box (NasdaqGS: JACK), a combined 6.6% of PSCD’s and the ETF’s two largest holdings, are up an average of 58% over the past year. [Upside for Small-Cap Consumer ETFs]
“The household durables industry is a component of the consumer discretionary sector, though it is smaller than retailing and media. The sector represents 12% of the S&P 500 and the S&P 1500 index, as of January 2015,” according to S&P Capital IQ.
PowerShares S&P SmallCap Consumer Discretionary Portfolio