Middle- and lower-class earners may have avoided higher taxes thanks to the “fiscal cliff” deal, but the expiration of a payroll tax cut related to Social Security could cause many such citizens to bring home less money, which might show up in consumer spending, according to an article on Zacks.
Here are a few ETFs listed in the article that investors should keep an eye on as middle-class households come to terms with a bigger bite stemming from Social Security taxes, according to the article:
- Select Sector SPDR Consumer Discretionary ETF (NYSEArca: XLY)
- Vanguard Consumer Discretionary Index Fund (NYSEArca: VCR)
- First Trust Consumer Discretionary AlphDEX Fund (NYSEArca: FXD)
To learn more about the holdings and diversification of each fund, head over to Zacks.com.