XLY Stock Recent News

XLY has underperformed the S&P 500 in 2025 due to economic uncertainty, high concentration in Amazon and Tesla, and sector-specific headwinds. While Amazon could rebound and McDonald's is relatively resilient, laggards like Starbucks, Nike, and Home Depot weigh on XLY's outlook. XLY's high volatility, concentrated top holdings, and lower tech exposure make it riskier than VOO, which is more diversified and tech-heavy.

Comparing the Consumer Discretionary Select Sector SPDR Fund (XLY) to the Consumer Staples Select Sector SPDR Fund (XLP) is a popular way to measure the strength of the consumer.

The Consumer Discretionary Select Sector SPDR is one of the 11 S&P 500 sector SPDRs, tracking the consumer discretionary sector. XLY includes companies in the leisure, media, and travel industries, among others. This is one of two consumer sectors in the S&P 500, but they are quite different.

With rate cut odds climbing, ETFs like VNQ, XLU, XLY, IWM and GLD look likely to gain from a Fed move.

Looking for broad exposure to the Consumer Discretionary - Broad segment of the equity market? You should consider the Consumer Discretionary Select Sector SPDR ETF (XLY), a passively managed exchange traded fund launched on December 16, 1998.

With nearly 40% of S&P 500 companies having reported their Q2 earnings, the overall picture is one of continued strength and steady improvement. Sector ETFs like VFH, XLK, XLY and ITA are in sweet spots.

VFH, XLK, XLY and ITA ETFs may benefit as strong Q2 earnings and rising Q3 estimates boost sector optimism.

Consumer sentiment hits a five-month high in July. XLY, VCR, PEZ and RTH ETFs stand to benefit from the upbeat outlook.

I maintain my buy rating on XLY, expecting sector improvement in H2 2025 and double-digit earnings growth in 2026 to drive returns. XLY's targeted exposure to top consumer discretionary stocks, especially Amazon and Home Depot, positions it for strong upside as rate cuts materialize. Despite recent underperformance and Tesla's drag, XLY's concentration in high-growth leaders and economic tailwinds make it an attractive opportunity.

Last week's economic data presented a picture of consumer resilience emerging alongside the continued challenge of rising inflation. While consumer spending staged a significant rebound in June, inflation heated up for a second straight month.