Consumer Discretionary Select Sector SPDR Fund

XLY

Market cap $24.1B

If you're interested in broad exposure to the Consumer Discretionary - Broad segment of the equity market, look no further than the Consumer Discretionary Select Sector SPDR ETF (XLY), a passively managed exchange traded fund launched on December 16, 1998.

The U.S. government shut down on Oct. 1, 2025, as last-minute talks failed. ETFs like TLT, XLV and PSCC hog attention.

Despite the job losses reported by ADP, the economic picture isn't so scary. Here are three ETFs that offer exposure to areas of growth, according to Sevens Report's Tom Essaye.

Bet on Wall Street Q4 tailwinds -- strong GDP data, holiday sales, AI boom & earnings growth. These have put the spotlight on IWM, XLF, XLY & XLE.

With the first quarter-point rate cut delivered by the Fed in quite a while and more to come, investors who've been holding off on new buys may wish to buy as the sizzling summer leads to a warm autumn for stocks.

AI is fueling massive stock gains, but the real economy tells a different story. Can productivity gains catch up before the next downturn hits? Investors need to know where the real opportunities — and risks — lie.

No investor can go wrong by investing in the broader S&P 500 index each month, as over the long term, their capital will grow in line with the average economic growth of the United States. However, safety and low volatility come with a tradeoff, which is the opportunity for higher growth that is lost through this broad diversification.

Global population is set to peak and decline by the 2050s-2080s, driven by irreversible fertility trends, impacting economies worldwide. Slowing and shrinking populations will lead to stagnating consumption, labor market mismatches, and reduced innovation, mirroring Japan and China's economic patterns. In a low-growth, low-inflation world, growth stocks and high-quality dividend payers—especially REITs—should outperform as capital chases scarce opportunities for growth and yield.

XLY has underperformed the S&P 500 in 2025 due to economic uncertainty, high concentration in Amazon and Tesla, and sector-specific headwinds. While Amazon could rebound and McDonald's is relatively resilient, laggards like Starbucks, Nike, and Home Depot weigh on XLY's outlook. XLY's high volatility, concentrated top holdings, and lower tech exposure make it riskier than VOO, which is more diversified and tech-heavy.

Comparing the Consumer Discretionary Select Sector SPDR Fund (XLY) to the Consumer Staples Select Sector SPDR Fund (XLP) is a popular way to measure the strength of the consumer.