Dow components Home Depot and McDonald’s (NYSE: MCD) are also two marquee holdings in XLY.

Another, new entrant to the retail ETF market focuses on online retailers. The Amplify Online Retail ETF (NASDAQ: IBUY) launched last month. IBUY seeks to replicate the price and yield performance of the EQM Online Retail Index (IBUYXT). The rules-based index is comprised of a diverse group of companies that generate at least 70 percent of their revenue from online and virtual retail sales.

Related: Retail ETFs: Be Careful Shopping With Amazon, Home Depot, Wal-Mart

The Vanguard Consumer Discretionary (NYSEArca: VCR) is one of the most familiar names among consumer discretionary ETFs. It is also the least expensive with an annual expense ratio of just 0.1%, or $10 per $10,000 invested.

Other factors are at play for discretionary ETFs, including rising wages and the higher minimum wage. including the rising minimum wage. Meanwhile, a growing segment of America is calling for higher minimum wages across the government after years of stalled efforts. The national minimum wage has been set at $7.25 per hour since 2009, and changes would require the support of the Republican-controlled Congress.

For more information on the Retail ETF market, visit our Retail category.

Consumer Discretionary Select Sector SPDR