PMR follows a factor-based index, which weights components based on price momentum, earnings momentum, quality, management action and value. Top holdings include O’Reilly Automotives (NasdaqGS: ORLY), L Brands (NYSE: LB) and Costco Wholesale (NasdaqGS: COST).

Improved performance for the discretionary sector has bolstered an array of related sub-sectors, including specialty retail. Clothing, electronics and automobiles will likely see prices decline as the stronger dollar permeates the economy. The cheaper prices could help attract greater demand, bring more traffic into stores and bolster the retail space.

Home improvement retailers “will likely experience mid-single digit revenue growth in the next fiscal year according to S&P Capital IQ Equity Analyst Efraim Levy, driven by new store additions and the benefits of a recovery in the housing market and improving consumer confidence,” according to S&P Capital IQ.