Consumer discretionary products
Best Buy (BBY) is the largest specialty retailer of consumer electronics products such as computing devices, tablets, mobile phone, televisions, home appliances, and related accessories. These products are categorized as consumer discretionary. As such, they are sensitive to the economic cycle. In contrast, consumer staples (XLP), which includes essentials such as food, must be purchased regardless of market conditions.
Consumer discretionary ETFs
There are several consumer discretionary exchange-traded funds, or ETFs, with holdings in Best Buy and its peers.
The Consumer Discretionary Select Sector SPDR Fund (XLY) has 19.9% holdings in specialty retailers including Best Buy, Staples (SPLS), and GameStop (GME). The fund has about $9.71 billion worth of assets under management, or AUM, and an expense ratio of 0.16%.
The First Trust Consumer Discretionary AlphaDEX Fund (FXD) has 31.9% holdings in specialty retailers. It has $1.97 billion worth of AUM and an expense ratio of 0.70%.
The Vanguard Consumer Discretionary ETF (VCR) has 3.0% holdings in specialty stores. VCR has $1.57 billion worth of AUM and an expense ratio of 0.12%.
XLY, FXD, and VCR respectively have 0.52%, 1.05%, and 0.41% holdings in Best Buy. The chart above indicates that these ETFs have performed better than Best Buy. These consumer discretionary ETFs give you the benefit of investing in companies across several industries, like consumer electronics, apparel, restaurants, and media.
Best Buy is also a part of several broad-market ETFs such as the SPDR S&P 500 ETF (SPY) that tracks the S&P 500 Index. Other broad-market ETFs include the iShares Dow Jones U.S. ETF (IYY) and the iShares Russell 3000 ETF (IWV). Best Buy is also a part of the SPDR S&P Retail ETF (XRT) that tracks the S&P Retail Select Industry Index.
Check out the Market Realist ETFs page for more information.