State Street Consumer Discretionary Select Sector SPDR ETF

XLY

Market cap $23.1B

There is currently a stark contrast between everyday consumer confidence and financial market behavior. On one hand, persistent inflation and elevated living costs have driven consumer sentiment to historic lows.

The State Street Consumer Discretionary Select Sector SPDR faces mounting pressure as inflation and record-low consumer confidence erode discretionary spending. XLY's bullish trend since 2009 is now in jeopardy, with lower highs since January 2026 and a 5.9% decline from its peak. Gaming, cruising, and travel stocks within XLY have underperformed in 2026, signaling broader sector weakness and raising the risk of a deeper ETF decline.

Consumer services is the most compelling consumer discretionary subsector, showing significant undervaluation and excellent quality versus 11-year historical baselines. FDIS offers broad exposure to the sector with 249 stocks and is cheaper than XLY on valuation metrics, but both funds are highly concentrated in Amazon and Tesla. FDIS and XLY have near-identical risk-adjusted performance and expense ratios; XLY's higher liquidity favors traders, while FDIS suits long-term investors seeking value.

In less than a month, the 2026 FIFA World Cup kicks off across the United States, Canada, and Mexico, running June 11 through July 19, 2026.

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U.S. Bank Asset Manager Group senior investment strategy director Rob Haworth discusses consumer discretionary stocks and sector on 'The Claman Countdown.' 00:00 Luxury Stocks Underperforming 00:26 The Wealthy Are Still Spending 01:01 Luxury vs.

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Last week's economic data was defined by conflicting signals from the consumer. While retail figures suggest resilience, sentiment levels have plummeted to record lows.