Latest news with #ConsumerDiscretionarySelectSectorSPDRFundXLY
Yahoo
10 hours ago
- Business
- Yahoo
Consumer Rebound Boosts Outlook for Discretionary ETFs
Americans have started to feel optimistic about the economy, as the initial shock from steep tariffs begins to wear off and inflation pressures ease. Rising consumer sentiment bodes well for household spending in the coming months. It is expected to have a positive impact on the consumer discretionary sector, which attracts a major portion of consumer spending. Investors can tap the encouraging trend in the basket form through consumer discretionary ETFs like Consumer Discretionary Select Sector SPDR Fund XLY, Vanguard Consumer Discretionary ETF VCR and iShares U.S. Consumer Services ETF IYC. These funds have a Zacks ETF Rank #3 (Hold).U.S. consumer sentiment climbed in June for the first time in six months, offering a glimmer of optimism amid lingering policy uncertainty. According to preliminary data from the University of Michigan's Surveys of Consumers, the Consumer Sentiment Index jumped to 60.5, up from 52.2 in May and well above economists' expectations of 53.6. The rebound follows one of the lowest sentiment readings on record in May. Short and long-term inflation forecasts softened notably. One-year inflation expectations dropped significantly to 5.1% in June, down from 6.6% in May—a level not seen in over four decades. Expectations for inflation over the next five to 10 years also edged down slightly to 4.1% from 4.2% the previous month (read: Sector ETFs Set to Gain as Inflation Cools in May). The surge in confidence followed the Trump administration's decision to delay new tariffs in April and reach a temporary truce with China in May. As Surveys of Consumers Director Joanne Hsu remarked, 'Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed.'These shifts suggest consumers are regaining some confidence as economic conditions stabilize and uncertainty around trade policy begins to diminish. The data aligns with the other survey report released late last month. The Conference Board's Consumer Confidence Index rose sharply in May to 98, well above April's 85.7 reading and comfortably ahead of the 87.1 economists had forecast. Its expectations index, which gauges the outlook for income, business, and labor conditions over the next six months, surged to 72.8 in May from a 13-year low of 55.4 in April — the strongest monthly jump since May 2009. Consumer Discretionary Select Sector SPDR Fund (XLY) Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space and tracks the Consumer Discretionary Select Sector Index. It holds 51 securities in its basket, with key holdings in hotels, restaurants and leisure, broadline retail, specialty retail, and automobiles with a double-digit allocation each (read: Consumer Discretionary ETFs Set for a Comeback?).Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $21.7 billion and an average daily volume of around 4 million shares. It charges 0.08% in expense Consumer Discretionary ETF (VCR) Vanguard Consumer Discretionary ETF follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 296 stocks in its basket. In terms of industrial exposure, broadline retail, automobile manufacturers and restaurants occupy the top three spots. Vanguard Consumer Discretionary ETF is the low-cost choice in the space, charging investors only 9 bps in annual fees while volume is good at nearly 77,000 shares a day. The fund has managed $6 billion in its asset base so U.S. Consumer Services ETF (IYC)iShares U.S. Consumer Discretionary ETF offers exposure to U.S. companies that distribute food, drugs, general retail items and media by tracking the Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index. It holds 174 stocks in its basket, with key holdings in consumer discretionary, consumer services, media & entertainment, and autos & U.S. Consumer Discretionary ETF has amassed $1.5 billion in its asset base and trades in a moderate volume of 86,000 shares a day on average. It charges 39 bps in annual fees from investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports iShares U.S. Consumer Discretionary ETF (IYC): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
30-05-2025
- Automotive
- Yahoo
ETFs to Ride on Tesla's Renewed Growth Story
Despite weak quarterly earnings, Tesla TSLA has been riding higher on optimism over the launch of robotaxis and Musk's promise to refocus on his business (read: Should You Buy Tesla ETFs Post Q1 Earnings Miss?). Investors can capitalize on the potential growth with ETFs having a substantial allocation to this luxury carmaker. These include Simplify Volt TSLA Revolution ETF TESL, The Nightview Fund NITE, Consumer Discretionary Select Sector SPDR Fund XLY, Vanguard Consumer Discretionary ETF VCR and Fidelity MSCI Consumer Discretionary Index ETF FDIS. According to a Bloomberg report, Tesla plans to launch its long-awaited robotaxi service in Austin, TX, on June 12. The news marks a key milestone in CEO Elon Musk's strategy to transition Tesla toward autonomous driving and artificial intelligence. The launch date is still tentative and subject to internal review but it aligns with Musk's earlier statements that the service would debut by the end of has successfully completed a driverless test drive of a Model Y SUV on public roads in Austin, marking a significant milestone as the company prepares to launch its robotaxi service. Elon Musk announced his departure from his advisory role in the Trump administration's Department of Government Efficiency (DOGE). This move signals Musk's renewed focus on Tesla amid recent challenges. Investors are optimistic that his full attention will drive innovation and address the company's recent hurdles, including declining sales and production issues. Beyond electric vehicles, Tesla is investing heavily in AI and humanoid robotics—areas Elon Musk believes could redefine the company's future value. While these initiatives are promising, they remain highly speculative, and many investors are holding out for more concrete progress before fully committing. Tesla reported dismal first-quarter 2025 results, missing estimates for earnings and revenues. Adjusted earnings per share came in at 27 cents, missing the Zacks Consensus Estimate of 44 cents and deteriorating 71% from the year-ago earnings. This marked the sixth earnings miss in the last seven quarters. Revenues dropped 9% year over year to $19.3 billion and fell short of the Zacks Consensus Estimate of $20.98 billion. The big miss was attributable to the automaker's brand crisis amid waves of protests, boycotts and criminal acts in response to CEO Elon Musk's political antics and work in the Trump administration. Simplify Volt TSLA Revolution ETF (TESL) Simplify Volt TSLA Revolution ETF uses an active management strategy to capture the potential of Tesla's stock price movements while implementing an advanced options overlay to manage downside risks. It has an expense ratio of 1.20% and AUM of $31.9 million. TESL trades in volume of 34,000 shares per day on average (read: Best-Performing ETFs of Last Week). The Nightview Fund (NITE)The Nightview Fund is an actively managed fund seeking long-term capital appreciation with the goal of outperforming the S&P 500 Total Return Index over a rolling 5-year period. It holds 19 stocks in its basket, with Tesla occupying the top position at 22.2% of its assets. The Nightview Fund charges 1.25% in annual fees and trades in an average daily volume of 2,000 shares. It has accumulated $25 million in its asset Discretionary Select Sector SPDR Fund (XLY)Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. Holding 51 securities in its basket, Tesla takes the second spot with 18.7% of the assets. Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $21.7 billion and charges 8 bps in annual fees. It trades in an average daily volume of 3.5 million shares and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Consumer Confidence Surges in May: ETFs to Gain).Vanguard Consumer Discretionary ETF (VCR)Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 292 stocks in its basket. Of these, Tesla occupies the second position with a 14.3% allocation. Vanguard Consumer Discretionary ETF charges investors 9 bps in annual fees, whereas volume is good at nearly 60,000 shares a day. The product has managed about $6 billion in its asset base and carries a Zacks ETF Rank #3 with a Medium risk MSCI Consumer Discretionary Index ETF (FDIS)Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 262 stocks in its basket. Of these, TSLA takes the second spot with a 14.7% share. Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.8 billion in its asset base while trading in a good volume of around 165,000 shares a day on average. Fidelity MSCI Consumer Discretionary Index ETF charges 8 bps in annual fees from investors and has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook. Tesla's robotaxi initiative is progressing more quickly than anticipated, with near-term testing and self-delivery milestones acting as catalysts. Combined with Musk's re-dedicated leadership and a long-term vision rooted in autonomy and AI, Tesla appears poised to solidify its position at the forefront of the next automotive revolution. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
