Consumer Discretionary Select Sector SPDR Fund ETF (NYSEARCA:XLY) outperformed the broader index in 2023, gaining 38% this year, compared to a ~24% rise in the S&P 500.
Within discretionary, the Automobiles & Components industry grew 76%, Retailing industry added 40.5%, Consumer Services gained 28%, while Consumer Durables & Apparel rose about 16%.
Top sector movers in 2023
Gainers
- Royal Caribbean Cruises (RCL) +169.77%
- Carnival Corporation (CCL) +141.72%
- PulteGroup (PHM) +129.94%
- Tesla (TSLA) +120.46%
- Amazon.co (AMZN) +85.70%
Losers
- Etsy, Inc (ETSY) -32.68%
- V.F. Corporation (VFC) -27.30%
- Genuine Parts Company (GPC) -20.94%
- Amcor (AMCR) -19.06%
- Hasbro (HAS) -12.30%
What Analysts Expect
The consumer discretionary sector (XLY) was raised from ‘underweight’ to ‘market weight’ by Citi Research, stating that margins for consumer discretionary distribution and retail subsector show improvement. Growth and Cyclicals remain two preferred clusters for the Bank. General Motors, Aptiv and Las Vegas Sands headline Citi’s top consumer discretionary picks.
While BCA Research said, a Republican win could mean a boost for the “high tax” sectors such as energy (XLE), consumer discretionary (XLY), financials (XLF), industrials (XLI), and materials (XLB).
What Quantitative Measures Say
Seeking Alpha’s Quant Rating system gives Consumer Discretionary Select Sector SPDR Fund ETF (XLY) a Buy rating, with 3.69 score.
The ETF has a strong liquidity grade of A+ and momentum grade of A-. Notably, the ratings system sees risk as a threat and assigns the ETF a grade of D in this category.
