The Consumer Discretionary Select Sector SPDR (NYSEArca: XLY), the largest exchange traded fund tracking the consumer discretionary, and rival consumer cyclical funds are delivering for investors this year. XLY is higher by 13% year-to-date and some market observers see more upside for the group.

Cap-weighted consumer discretionary ETFs, such as XLY, usually feature massive weights to Amazon.com Inc. (NASDAQ: AMZN).

XLY devotes almost 23% of its weight to Amazon, or more than triple the weight the ETF assigns to its second-largest holding. In other words, Amazon’s price action is a big deal for many consumer discretionary ETFs.

“Of the 11 sectors of the S&P 500, TradingAnalysis.com founder Todd Gordon believes consumer discretionary is set to rally along with the broader market. The chart-minded trader suggested that this group of stocks could be a less volatile way to ride the market higher,” reports CNBC.

Consumer Call

As the market moves toward the late stages of the business cycle, consumer discretionary stocks and sector-related exchange traded funds could underperform other market segments. XLY allocates nearly 30% of its weight to Internet and direct marketing retailers.

Related: ProShares Alternative Retail ETF CLIX Up 28.8%