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Consumer Discretionary ETFs Rose on Backdrop of Positive Earnings

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ETF performance

The Week ended December 04, 2015, saw consumer discretionary stocks rise on the backdrop of some positive earnings and macroeconomic releases. The PowerShares DWA Consumer Cyclicals Momentum ETF (PEZ) had one of the highest gains in the sector ETFs on Friday when it rose 2.3%, whereas the Consumer Discretionary Select Sector SPDR ETF (XLY) rose 1.9%. XLY can be considered as a proxy for the consumer discretionary sector of the United States. It was followed by the Vanguard Consumer Discretionary ETF (VCR) and the Fidelity MSCI Consumer Discretionary ETF (FDIS), with both rising by 1.8%.

The broad retail sector itself saw positive signs as the SPDR S&P Retail ETF (XRT) rose by 1.7%. It’ss an equal weighted index with exposure to 100 prominent retail stocks of the United States.

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As you can from the graph above, December started with the consumer discretionary sector by falling as the brick-and-mortar retailers were not able to perform as expected at the start of the holiday season, but some positive earnings and job market improvement helped the sector pick up over the week. The retail sector (XRT) (XLY) was still not able to beat the broad market index S&P 500 (SPX) as the graph shows.

The Consumer Discretionary Select Sector SPDR ETF (XLY) has several top holdings. They include Amazon.com (AMZN) with a 10.70% exposure, Walt Disney (DIS) with 7.4%, and Home Depot (HD) with 7.2%.

In the next article, we’ll look at the how the technical indicators turned out in the week.

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