What are broad consumer discretionary ETFs?
Consumer discretionary companies offer things people want but can live without: cars, restaurant meals, travel, home improvement, clothing and online shopping. Fifteen US-listed ETFs focus on this sector. Amazon is the most widely held stock, owned by 10 of the 15 funds. Booking Holdings is next (9 funds), then Starbucks (8). Tesla, Home Depot, McDonald's, TJX, Lowe's, DoorDash, Marriott and General Motors each appear in 7.
All of them track an index, but the indexes differ a lot. The big sector funds weight stocks mainly by company size, so a few giants dominate. XLY follows the Consumer Discretionary Select Sector Index. In XLY, Amazon makes up 22.22% and Tesla 19.64%, and the 10 largest holdings total 69.16%. VCR, FDIS and IYC hold more stocks and are somewhat less top-heavy. RSPD holds the same companies as XLY in roughly equal amounts, so its top 10 is just 24.86%. PEZ picks stocks by price momentum, PSCD holds smaller companies, and FXD spreads its money thinly across 113 stocks. RXI is global and INCO holds Indian consumer companies. CHIQ holds Chinese ones such as Meituan and Alibaba, and MILN follows a millennial-spending theme.
Three funds are short-term trading tools that reset every day. WANT seeks 3 times the daily move of its sector index and UCC 2 times. SCC seeks minus 2 times, so it gains when the sector falls. None of the 15 uses options to generate income.
The expense ratio is the yearly fee taken from fund assets. It runs from 0.08% for XLY to 1.00% for leveraged WANT, with a median of 0.50%. FDIS (0.084%) and VCR (0.09%) cost almost as little as XLY. The money is heavily concentrated: 96.9% of the group's assets sit in the five largest funds, XLY, VCR, FDIS, IYC and RSPD.
Broad consumer discretionary ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 15 biggest broad consumer discretionary ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Amazon.com Inc | 10 of 15 | 15.28% |
| Booking Holdings Inc | 9 of 15 | 2.44% |
| Starbucks Corp | 8 of 15 | 1.84% |
| Tesla Inc | 7 of 15 | 11.04% |
| Home Depot Inc | 7 of 15 | 4.88% |
| McDonald's Corp | 7 of 15 | 2.89% |
| TJX Cos Inc | 7 of 15 | 2.63% |
| Lowe's Cos Inc | 7 of 15 | 1.83% |
| DoorDash Inc | 7 of 15 | 1.4% |
| Marriott International Inc/MD | 7 of 15 | 1.31% |
| General Motors Co | 7 of 15 | 1.28% |
| Ross Stores Inc | 5 of 15 | 1.26% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest broad consumer discretionary ETFs, side by side
Swipe the table to see all 5 funds.
| XLY | VCR | FDIS | IYC | RSPD | |
|---|---|---|---|---|---|
| Net assets | $22.59B | $6.63B | $1.68B | $1.19B | $328.9M |
| Expense ratio | 0.08% | 0.09% | 0.08% | 0.37% | 0.4% |
| Holdings | 47 | 277 | 245 | 157 | 47 |
| In the 10 largest | 69.16% | 56.12% | 54.81% | 49.94% | 24.86% |
| Biggest holding | Amazon.com Inc (22.22%) | Amazon.com Inc (21.98%) | Amazon.com Inc (22.83%) | Amazon.com, Inc. (16%) | Expedia Group, Inc. (2.73%) |
| Yield | 0.81% | 0.78% | 0.78% | 0.53% | 0.94% |
| 1-year return | -0.5% | -2.6% | -2.3% | -4.2% | -4.9% |
| 3 years, a year | -8.0% | +16.3% | +16.4% | +17.0% | +13.3% |
| 5 years, a year | -10.0% | +3.8% | +3.8% | +4.4% | — |
| Worst drop, past year | -15.0% | -15.6% | -15.5% | -12.0% | -13.8% |
| Launched | 1998 | 2004 | 2013 | 2000 | 2006 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 30, 2026.
Head to head
XLY vs VCR
XLY tracks the Consumer Discretionary Select Sector Index with 47 stocks, while VCR holds 277. Amazon is the largest holding in both, at 22.22% and 21.98%. But XLY holds more Tesla (19.64% vs 15.43%) and puts 69.16% in its top 10, against 56.12% for VCR. They share 76.8% of their assets, and fees are nearly the same at 0.08% and 0.09%. In the year to October 30, 2026, XLY lost 0.5% and VCR 2.6%. Their worst drops along the way were 15% and 15.6%. VCR may suit investors wanting more companies; XLY, those focused on the sector's giants.
VCR vs FDIS
These two are near twins. VCR tracks a benchmark of consumer discretionary stocks with 277 holdings. FDIS tracks the MSCI USA IMI Consumer Discretionary 25/50 Index with 245. They share 238 stocks and 95.3% of their assets. Amazon is the largest holding in both (21.98% and 22.83%), though VCR holds more Tesla (15.43% vs 12.99%). Their top 10 holdings make up 56.12% and 54.81%. Fees are 0.09% and 0.084%. In the year to October 30, 2026, VCR lost 2.6% and FDIS 2.3%, with worst drops of 15.6% and 15.5%. The choice may come down to which fund company an investor prefers.
XLY vs RSPD
Both own the same 47 companies but weight them differently. XLY sizes its holdings by company value, so Amazon is 22.22% and the top 10 make up 69.16%. RSPD tracks the S&P 500 Equal Weight Consumer Discretionary Index. Its largest holding, Expedia, is just 2.73%, and its top 10 is 24.86%. So they share only 51.2% of their assets. RSPD charges 0.40%, against 0.08% for XLY. In the year to October 30, 2026, XLY lost 0.5% and RSPD 4.9%, with worst drops of 15% and 13.8%. RSPD may suit investors wanting less reliance on Amazon and Tesla.
How much do the largest broad consumer discretionary ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| VCR and FDIS | 95.3% | 238 | |
| XLY and VCR | 76.8% | 47 | |
| XLY and FDIS | 75.4% | 47 | |
| FDIS and IYC | 66.7% | 106 | |
| VCR and IYC | 65.4% | 104 | |
| XLY and IYC | 61.3% | 46 | |
| XLY and RSPD | 51.2% | 47 | |
| FDIS and RSPD | 39.7% | 47 | |
| VCR and RSPD | 39.3% | 47 | |
| IYC and RSPD | 38.6% | 46 |
From each fund’s full holdings in its latest N-PORT report.
How have broad consumer discretionary ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing broad consumer discretionary ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | XLY Consumer Discretionary Select Sector SPDR Fund | $22.59B | 0.08% | +6.0% | -2.8% | -0.5% | -8.0% |
| 2 | FXD First Trust Consumer Discretionary AlphaDEX Fund | $269.2M | 0.6% | +2.8% | -1.8% | -1.1% | +13.6% |
| 3 | FDIS Fidelity MSCI Consumer Discretionary Index ETF | $1.68B | 0.08% | +4.0% | -1.4% | -2.3% | +16.4% |
| 4 | VCR Vanguard Consumer Discretionary ETF | $6.63B† | 0.09% | +3.8% | -1.6% | -2.6% | +16.3% |
| 5 | IYC iShares U.S. Consumer Discretionary ETF | $1.19B | 0.37% | +3.5% | -3.0% | -4.2% | +17.0% |
| 6 | RSPD Invesco S&P 500 Equal Weight Consumer Discretiona… | $328.9M | 0.4% | +3.8% | -4.1% | -4.9% | +13.3% |
| 7 | RXI iShares Global Consumer Discretionary ETF | $251.7M | 0.37% | +2.3% | -6.1% | -7.8% | +13.3% |
| 8 | MILN Global X Millennial Consumer ETF | $95.3M | 0.5% | +0.8% | -7.8% | -12.5% | +15.2% |
| 9 | INCO Columbia India Consumer ETF | $225.9M | 0.75% | -4.2% | -11.8% | -14.0% | +5.0% |
| 10 | CHIQ Global X MSCI China Consumer Discretionary ETF | $129.7M | 0.65% | -2.5% | -26.7% | -33.7% | -2.6% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How broad consumer discretionary ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| XLY | not yet launched | not yet launched | -33.7% |
| VCR | not yet launched | not yet launched | -32.9% |
| FDIS | not yet launched | -35.2% | -33.0% |
| IYC | -51.9% | -33.3% | -31.8% |
| RSPD | not yet launched | not yet launched | not yet launched |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives broad consumer discretionary ETFs?
Consumer discretionary companies depend on how much spare money households have. When jobs are plentiful and wages rise, people spend more on cars, meals out, travel and home projects. When budgets tighten, these are often the first purchases put off. So sales and profits swing more than the economy as a whole. Interest rates matter too. Higher rates make car loans, mortgages and credit card balances cost more, which can slow sales at carmakers such as General Motors and at home-improvement chains such as Home Depot and Lowe's. In the largest funds, the fortunes of Amazon and Tesla also carry outsized weight.
In the 2008 and 2020 crashes, the sector fell about as much as the market. IYC dropped 51.9% in the 2008 financial crisis, against 55.2% for the S&P 500. In the 2020 COVID crash, FDIS fell 35.2% and IYC 33.3%, close to the index's 33.7%. The 2022 bear market was much harder on the sector. XLY fell 33.7%, VCR 32.9%, FDIS 33% and IYC 31.8%, while the S&P 500 fell 24.5%.
Broad consumer discretionary ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | XLY Consumer Discretionary Select Sector SPDR Fund | 0.08% | $8 a year | $22.59B |
| 2 | FDIS Fidelity MSCI Consumer Discretionary Index ETF | 0.08% | $8 a year | $1.68B |
| 3 | VCR Vanguard Consumer Discretionary ETF | 0.09% | $9 a year | $6.63B |
| 4 | PSCD Invesco S&P SmallCap Consumer Discretionary E… | 0.29% | $29 a year | $24.4M |
| 5 | IYC iShares U.S. Consumer Discretionary ETF | 0.37% | $37 a year | $1.19B |
Ordinary funds with at least $10 million in net assets. The median ordinary broad consumer discretionary ETF charges 0.37% a year; leveraged and inverse funds usually charge more.
Do broad consumer discretionary ETFs pay dividends?
11 of the 12 ordinary broad consumer discretionary ETFs with a page here paid distributions over the last 12 months, with a median yield of 0.78%.
| Highest yields | Yield | Net assets |
|---|---|---|
| CHIQ Global X MSCI China Consumer Discretionary ETF | 1.81% | $129.7M |
| RXI iShares Global Consumer Discretionary ETF | 1.49% | $251.7M |
| RSPD Invesco S&P 500 Equal Weight Consumer Discret… | 0.94% | $328.9M |
| XLY Consumer Discretionary Select Sector SPDR Fund | 0.81% | $22.59B |
| VCR Vanguard Consumer Discretionary ETF | 0.78% | $6.63B |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a broad consumer discretionary ETF
- What each fund charges per year. XLY charges 0.08% a year, FDIS 0.084% and VCR 0.09%. Small-cap PSCD charges 0.29%, IYC and RXI 0.37%, RSPD 0.40%, and FXD and PEZ 0.60%. The leveraged funds charge 0.95% to 1.00%.
- How much rides on Amazon and Tesla. In XLY, Amazon and Tesla are the two largest holdings, and the top 10 make up 69.16%. VCR (56.12%), FDIS (54.81%) and IYC (49.94%) are less top-heavy. Equal-weight RSPD's top 10 is 24.86%.
- How each index picks and weights stocks. Most funds weight by company size. RSPD gives each stock an equal share and PEZ follows price momentum. PSCD holds small companies from the S&P SmallCap 600. FXD spreads money across 113 stocks, none above 1.67%.
- US only, global or one country. XLY, VCR, FDIS and IYC focus on US companies. RXI adds overseas names such as Alibaba and Toyota. INCO holds only Indian stocks and CHIQ only Chinese ones. CHIQ lost 33.7% in the year to October 30, 2026.
- Fund size and staying power. XLY has about $22.6 billion in assets and VCR about $6.6 billion. PSCD has about $24 million and PEZ about $22 million. Very small funds can cost more to trade and are more likely to close.
- Leveraged and inverse versions behave differently. WANT seeks 3 times the sector's daily move, UCC 2 times and SCC minus 2 times. Because they reset daily, longer results drift. UCC lost 15.5% in the year to October 30, 2026, while XLY lost 0.5%.
What are the risks of broad consumer discretionary ETFs?
- Heavy reliance on Amazon and Tesla. Amazon is 22.22% of XLY and Tesla 19.64%. Amazon is also about 22% of VCR and of FDIS. A slump in either company can pull down the whole fund, whatever the rest of the sector does.
- Deeper falls when spending slows. When household budgets tighten, new cars, trips and meals out are often cut first, and profits can fall faster than sales. In the 2022 bear market, XLY fell 33.7% and VCR 32.9%, against 24.5% for the S&P 500.
- Single-country funds can swing much harder. CHIQ, which holds Chinese companies such as Meituan and Alibaba, lost 33.7% in the year to October 30, 2026. INCO, which focuses on India, lost 14%. Local rules, politics and currency moves add risk.
- Leveraged and inverse funds magnify swings. Volatility measures how widely returns swing. WANT's was 56.7% over the year to October 30, 2026, against 19.3% for XLY, and its worst drop was 41.8%. Daily resets mean losses can compound quickly.
- Doubling up with a broad index fund. Owners of an S&P 500 or total-market fund already hold Amazon, Tesla and Home Depot. Adding XLY, VCR or FDIS puts more into the same few names. VCR and FDIS share 95.3% of assets, so combining them adds little.
Leveraged and inverse broad consumer discretionary ETFs (2x and 3x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all broad consumer discretionary ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | XLY Consumer Discretionary Select Sector SPDR Fund | $22.59B | 0.08% | 0.81% | -2.8% | -0.5% | -10.0% |
| 2 | VCR Vanguard Consumer Discretionary ETF | $6.63B† | 0.09% | 0.78% | -1.6% | -2.6% | +3.8% |
| 3 | FDIS Fidelity MSCI Consumer Discretionary Index ETF | $1.68B | 0.08% | 0.78% | -1.4% | -2.3% | +3.8% |
| 4 | IYC iShares U.S. Consumer Discretionary ETF | $1.19B | 0.37% | 0.53% | -3.0% | -4.2% | +4.4% |
| 5 | RSPD Invesco S&P 500 Equal Weight Consumer Discretiona… | $328.9M | 0.4% | 0.94% | -4.1% | -4.9% | — |
| 6 | FXD First Trust Consumer Discretionary AlphaDEX Fund | $269.2M | 0.6% | 0.72% | -1.8% | -1.1% | +2.7% |
| 7 | RXI iShares Global Consumer Discretionary ETF | $251.7M | 0.37% | 1.49% | -6.1% | -7.8% | +2.6% |
| 8 | INCO Columbia India Consumer ETF | $225.9M | 0.75% | 0% | -11.8% | -14.0% | +4.2% |
| 9 | CHIQ Global X MSCI China Consumer Discretionary ETF | $129.7M | 0.65% | 1.81% | -26.7% | -33.7% | -11.2% |
| 10 | MILN Global X Millennial Consumer ETF | $95.3M | 0.5% | 0.32% | -7.8% | -12.5% | -0.2% |
Questions investors ask about broad consumer discretionary ETFs
What are consumer discretionary stocks?
They are shares of companies that offer things people want but can put off, such as cars, restaurant meals, travel, home improvement and clothing. The stocks most widely held by consumer discretionary ETFs include Amazon, Booking Holdings, Starbucks, Tesla, Home Depot, McDonald's, TJX, Lowe's, DoorDash, Marriott and General Motors. They differ from consumer staples: the makers and retailers of food and household basics, which people keep purchasing even when money is tight.
How many consumer discretionary ETFs are there?
There are 15 US-listed consumer discretionary ETFs. Four are broad sector funds: XLY, VCR, FDIS and IYC. Others take a different angle: equal-weight RSPD, broadly spread FXD, momentum-based PEZ, small-cap PSCD, global RXI, India-focused INCO, China-focused CHIQ and millennial-themed MILN. The other three, WANT, UCC and SCC, are leveraged or inverse funds meant for short-term trading.
What is the largest consumer discretionary ETF?
The Consumer Discretionary Select Sector SPDR Fund (XLY) is the largest, with about $22.6 billion in net assets. State Street launched it in 1998. It tracks the Consumer Discretionary Select Sector Index and holds 47 stocks. Vanguard's VCR is next at about $6.6 billion, followed by Fidelity's FDIS at about $1.7 billion. The five largest funds hold 96.9% of the money invested in the group.
What is the cheapest consumer discretionary ETF?
XLY has the lowest expense ratio, the yearly fee taken from fund assets, at 0.08%. FDIS (0.084%) and VCR (0.09%) cost almost the same. Next come small-cap PSCD at 0.29% and IYC at 0.37%. At the other end, the leveraged funds charge 0.95% to 1.00%. The median across all 15 funds is 0.50%.
XLY vs VCR: what is the difference?
The main difference is breadth. XLY holds 47 stocks and VCR holds 277, which makes XLY more concentrated. Its top 10 holdings make up 69.16%, against 56.12% for VCR, and it holds more Tesla (19.64% vs 15.43%). Amazon is the largest holding in both. They share 76.8% of their assets and charge 0.08% and 0.09% a year. In the year to October 30, 2026, XLY lost 0.5% and VCR 2.6%.
Do consumer discretionary ETFs hold Amazon and Tesla?
Many do. Amazon is held by 10 of the 15 funds. It is the largest holding in XLY (22.22%), VCR (21.98%), FDIS (22.83%), IYC (16%) and global RXI (15.28%), with Tesla second in each. Equal-weight RSPD holds both at much smaller weights. INCO focuses on India and CHIQ on China, and their largest holdings are local companies such as Nestle India and Meituan.
Do consumer discretionary ETFs pay dividends?
Yes, but the payouts are small. Of the 12 funds with a published yield, 11 pay dividends. The median yield was 0.78% as of October 30, 2026. CHIQ had the highest yield at 1.81%, followed by RXI at 1.49%, RSPD at 0.94%, XLY at 0.81% and VCR at 0.78%. For these funds, changes in share prices have a much bigger effect on returns than income does.
What are the leveraged and inverse consumer discretionary ETFs?
There are three. Direxion's WANT seeks 3 times the daily move of its consumer discretionary index. ProShares' UCC seeks 2 times the daily move of the S&P Consumer Discretionary Select Sector Index. ProShares' SCC seeks minus 2 times, so it gains when the sector falls. Because they reset every day, results over months can differ widely from the multiple. In the year to October 30, 2026, WANT lost 27.3% and UCC 15.5%, while SCC gained 6.5%. They are trading tools, not long-term holdings.
Is there a Vanguard, Fidelity or Schwab consumer discretionary ETF?
Yes. Vanguard offers one: VCR (Vanguard Consumer Discretionary ETF). Fidelity offers one: FDIS (Fidelity MSCI Consumer Discretionary Index ETF). Schwab doesn’t have a consumer discretionary ETF.
