In fact, of the 10 Dow stocks that are up at least 5% this year, three – Home Depot, Walt Disney (NYSE: DIS) and McDonald’s (NYSE: MCD) – are XLY holdings. That trio represents a combined 17.6% of XLY’s weight.
“However, XLY is our highest scoring consumer discretionary ETF in part due to our analysis of its holdings. S&P Capital IQ conducts holdings-level analysis using five proprietary metrics. Two are tied to the valuation and three to the risk. Overall, XLY ranks favorably for S&P Capital IQ STARS and S&P Capital IQ Quality Rankings, while neutral inputs for the three others,” said S&P Capital IQ.
The research firm sees Comcast (NasdaqGS: CMCSA) as undervalued and also has buy ratings on Dow component Nike (NYSE: NKE), Time Warner (NYSE: TWX) and Twenty-First Century Fox (NasdaqGS: FOXA). Those stocks combine for combine for 15.15 of XLY’s weight.
Consumer Discretionary Select Sector SPDR
