The discretionary ETFs include a good tilt toward retailers. For instance, XLY includes 18.6% specialty retail, 13.3% internet retail and 5.9% multiline retail. VCR holds 4.5% apparel retail, 3.0% auto retail, 6.9% home improvement retail, 1.0% homefurnishing retail and 10% internet retail. IYC also includes 33.1% retail.
Alternatively, investors may look to other areas of the market that are less sensitive to household consumption trends, such as the tech sector.
For tech exposure, there are a number of broad ETFs to select from, including the Technology Select Sector SPDR (NYSEArca: XLK), iShares U.S. Technology ETF (NYSEArca: IYW) and Vanguard Information Technology ETF (NYSEArca: VGT). XLK tracks the tech sector from the S&P 500 index. IYW also tracks a similar group of tech companies taken from the Dow Jones U.S. Technology Index and does not include telecom stocks. VGT, on the other hand, includes a small position in information technology services companies. [Time for Some Tech With a Favored ETF]
iShares US Consumer Services ETF
For more information on the consumer sector, visit our consumer discretionary category.
Max Chen contributed to this article.