Equity: U.S. Consumer Cyclicals
With 11 ETFs and over $28.62B in combined AUM, the Equity: U.S. Consumer Cyclicals segment provides exposure to the U.S. space with a focus on securities.
Year-to-date, the best-performing ETF in the segment is the Invesco S&P SmallCap Consumer Discretionary ETF (PSCD), with a total return of 12.39%. Meanwhile, the most popular ETF is the Consumer Discretionary Select Sector SPDR Fund (XLY) with $18.99BB in assets under management.
Investors should take a look at the Vanguard Consumer Discretionary ETF (VCR). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. VCR tracks a market-cap-weighted index of stocks in the US Consumer Discretionary sector. VCR has an expense ratio of 0.10% and tracks the MSCI US Investable Market Consumer Discretionary 25/50 Index.
ETF.com Efficiency Insight
The average efficiency score in the Equity: U.S. Consumer Cyclicals segment is 91 out of 100, with the Vanguard Consumer Discretionary ETF(VCR) obtaining the highest rating of 97 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.34% per year, with the Fidelity MSCI Consumer Discretionary Index ETF (FDIS) having the lowest expense ratio, charging investors 0.08% yearly.
Investors should look for funds with tight tracking, such as the Fidelity MSCI Consumer Discretionary Index ETF (FDIS), with a 12-month median tracking difference of 0.03%.
ETF.com Tradability Insight
The average tradability score in the Equity: U.S. Consumer Cyclicals segment is 82 out of 100, with the Consumer Discretionary Select Sector SPDR Fund(XLY) obtaining the highest rating of 100 out of 100.
The Consumer Discretionary Select Sector SPDR Fund (XLY) is the undisputed segment leader when it comes to liquidity. The fund trades 494.81M in daily average volume. Investors should also find ample liquidity in the Vanguard Consumer Discretionary ETF (VCR), with $27.92M in daily dollar volume.
Use limit orders to trade funds such as the Invesco DWA Consumer Cyclicals Momentum ETF(PEZ), due to their double-digit market spreads.
ETF.com Fit Insight
The Thomson Reuters US Cyclicals has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to FDIS. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, PSCD follows a Vanilla strategy and obtains a low Fit score compared with our neutral benchmark.