Last week’s stock market decline saw equities fall more than 10% from April highs, the level generally recognized as a correction. However, even in a broad pullback, some groups continue to fare better than others.
One sector outperforming the overall market is Consumer Discretionary stocks.
Despite the correction, the Consumer Discretionary Select Sector SPDR Fund (XLY) remains up 5% over the past 3 months compared to a 2% decline for the SPDR S&P 500 (SPY) over the same time period.
XLY top holdings include such basic barometers of consumer spending as McDonalds, Disney andAmazon. Home-releated retailers such as Home Depot, Lowes and Target are also top holdings. The ETF carries an expense ratio of 0.21% and has a dividend yield of 1.32%.
The outperformance on the part of the consumer discretionary sector became apparent back in February when consumer stocks surged despite a poor consumer confidence report. See Consumer Discretionary Sector Pulls Ahead for more.
For more investing choices, see the list of sector ETFs.