XLY allocates nearly 29% of its weight to Internet and direct marketing retailers. That includes a 20.5% weight to Amazon.com Inc. (NASDAQ: AMZN). Rising incomes and consumer spending could continue propelling XLY and other consumer discretionary ETFs.
“Consumer spending in January rose a scant 0.2% as Americans cut back after the holidays. And spending fell for the first time in a year if adjusted for inflation, the government said Thursday. Economists polled by MarketWatch had forecast a 0.3% increase in spending,” reports MarketWatch.
Rivals to XLY include the Vanguard Consumer Discretionary (NYSEArca: VCR) and Fidelity MSCI Consumer Discretionary Index (NYSEArca: FDIS).
For more information on the consumer sector, visit our consumer discretionary category.