At a glance
XLY charges 0.08% a year, below the 0.35% average of the 8 funds most like it (the cheapest of 9). It has $22.59B in assets, the largest of that group; it paid 0.81% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −0.5% with distributions reinvested (S&P 500: +11.5%), 2nd of those 9 funds; over three years it returned −8.0% a year. At its worst it fell 35.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 29 months after the low. Its ten largest positions make up 69.2% of the fund, out of 47 in all.
The short version
The Consumer Discretionary Select Sector SPDR Fund (XLY) is a State Street index fund that holds the S&P 500's consumer discretionary stocks. These are companies offering goods and services people want rather than need, such as Amazon, Tesla, Home Depot and McDonald's. Its 0.08% annual fee (expense ratio) is the lowest among similar funds, which average 0.35%. The trade-off is concentration: as of June 30, 2026, Amazon was 22.2% of assets and Tesla 19.6%.
Price history
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XLY -0.5% over the year to Oct 30, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| XLY official prospectus, to Dec 31, 2025 | — | +7.37% | — | +9.09% | +13.01% | — |
| XLY price data to Oct 30, 2026 | -2.8% | -0.5% | -8.0% | -10.0% | — | -0.9% |
- Over the year to Oct 30, 2026, XLY returned -0.5%, 2nd of 9 among similar funds.
- Its 5-year annualized return was -10.0%.
- Its worst full calendar year was 2025 (-46.4%); its best was 2023 (+39.0%).
- The deepest fall in its price history was 57.8% (Dec 17, 2024 to May 8, 2025), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -2.8% | — |
| 2025 | -46.4% | +7.37% |
| 2024 | +26.0% | +26.45% |
| 2023 | +39.0% | +39.64% |
| 2022 | -36.5% | -36.24% |
| 2021 | +27.5% | +27.83% |
| 2020 | — | +29.58% |
| 2019 | — | +28.42% |
| 2018 | — | +1.65% |
| 2017 | — | +22.77% |
| 2016 | — | +5.88% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Jun 2, 2020 |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 33.7% over that stretch · deepest drop along the way 35.9%, back to its old high 28.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6900 | |
| 2025 | $0.9500 | +18.0% |
| 2024 | $0.8050 | +15.8% |
| 2023 | $0.6950 | +7.8% |
| 2022 | $0.6450 | +19.4% |
| 2021 | $0.5400 |
What's inside
As of Jun 30, 2026, the fund held 47 securities; the ten largest made up 69.16% of assets.
| Holding | Weight | |
|---|---|---|
| Amazon.com Inc | 22.22% | |
| Tesla Inc | 19.64% | |
| Home Depot Inc | 5.83% | |
| McDonald's Corp | 4.15% | |
| TJX Cos Inc | 3.92% | |
| Booking Holdings Inc | 3.44% | |
| Lowe's Cos Inc | 3.07% | |
| Starbucks Corp | 2.90% | |
| Marriott International Inc/MD | 2.02% | |
| Royal Caribbean Cruises Ltd | 1.97% | |
| O'Reilly Automotive Inc | 1.90% | |
| Hilton Worldwide Holdings Inc | 1.87% | |
| DoorDash Inc | 1.74% | |
| General Motors Co | 1.73% | |
| Ross Stores Inc | 1.71% |
By country
United States 95.48%Liberia 1.97%Bermuda 1.16%Switzerland 0.97%Jersey 0.32%By asset type
Stocks 99.9%By sector
Sectors of the companies held, for the 89.8% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $440.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +8.59%, +2.18%, -2.78%.
How it works
XLY tracks the Consumer Discretionary Select Sector Index from S&P Dow Jones Indices (S&P DJI). Each stock must be in the S&P 500 and classed as consumer discretionary under the Global Industry Classification Standard (GICS), a system for sorting companies by industry. That includes retailers, hotels and restaurants, apparel and luxury goods, carmakers and auto parts, household durables and leisure companies. The index had 49 stocks as of November 30, 2025.
The index uses a "modified market capitalization" method. Bigger companies, measured by their total stock market value, get bigger weights. S&P DJI can trim an oversized stock so the fund meets federal tax rules on concentration. The fund is still top-heavy. As of June 30, 2026, Amazon was 22.2% of assets and Tesla 19.6%, and the top 10 holdings totaled 69.2%. As a "non-diversified" fund, it can hold fewer stocks, so one company's slump can hit it hard.
The fund uses replication. It owns substantially all the index's stocks in about the same proportions and keeps at least 95% of total assets in them. The rest can sit in cash or money market funds, including ones run by its adviser, SSGA Funds Management. Trading is light: portfolio turnover was 10%, so roughly a tenth of holdings changed over its latest fiscal year.
What it really costs
- XLY charges 0.08% a year, versus an average of 0.35% for the similar funds below (1st of 9, cheapest first).
- Of that, 0.03% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $8 in the first year and $103 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XLY | $8 | $26 | $45 | $103 |
In a retirement portfolio
It owns one sector of the S&P 500, led by Amazon (22.2%) and Tesla (19.6%) as of June 30, 2026, so it carries more single-company and sector risk than a broad stock fund.
XLY adds a concentrated bet on consumer spending, which tends to rise and fall with the economy. In the 2022 bear market, a long market slide, it fell 35.9% between January 3 and June 16, 2022. It took about 28.7 months, until November 6, 2024, to regain that peak. Calendar 2022, down 36.24%, was its worst of the 10 years through 2025. Its losses in 2008 and the early-2020 crash aren't shown here, though it ended 2020 up 29.58%. Anyone cashing out shares or drawing income during a slump like 2022 could lock in steep losses.
Income is small: the 12-month yield was 0.8% as of October 29, 2026, with dividends paid quarterly. Costs are low: 0.08% a year, or $103 over 10 years on $10,000 in the SEC's standard example. Past results don't predict future ones, and a sound plan looks at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting low-cost access to S&P 500 retailers, restaurants, hotels and carmakers, at 0.08% a year versus a 0.35% average for similar funds.
- Long-term holders comfortable with Amazon and Tesla driving results; they made up 22.2% and 19.6% of assets as of June 30, 2026.
- Investors adding a small consumer-spending tilt beside a broad core fund, who can sit through losses like its 36.24% drop in 2022.
Look elsewhere if
- Income seekers: its 12-month yield was just 0.8% as of October 29, 2026, paid quarterly.
- Investors uneasy that Amazon and Tesla dominate; the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) spreads weight evenly but costs 0.40% a year.
- Anyone who may need to cash out in a downturn: it fell 35.9% in 2022 and took about 28.7 months to regain its peak.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| XLY this fund | — | 0.08% | $22.59B | -0.5% | -8.0% |
| VCR Vanguard Consumer Discretionary ETF | 77% | 0.09% | $6.63B | -2.6% | +16.3% |
| FDIS Fidelity MSCI Consumer Discretionary Index … | 75% | 0.084% | $1.68B | -2.3% | +16.4% |
| RXI iShares Global Consumer Discretionary ETF | 62% | 0.41% | $251.7M | -7.8% | +13.3% |
| IYC iShares U.S. Consumer Discretionary ETF | 61% | 0.39% | $1.19B | -4.2% | +17.0% |
| RSPD Invesco S&P 500 Equal Weight Consumer Discr… | 51% | 0.4% | $328.9M | -4.9% | +13.3% |
| RTH VanEck Retail ETF | 40% | 0.35% | $248.4M | +7.1% | +18.6% |
| MILN Global X Millennial Consumer ETF | 26% | 0.5% | $95.3M | -12.5% | +15.2% |
Questions investors ask
Is XLY good for retirement?
XLY can fill a small, higher-risk slot in a retirement portfolio, but it isn't built for income or stability. Its 12-month yield was 0.8% as of October 29, 2026, and it lost 36.24% in 2022. It owns one sector, with Amazon at 22.2% and Tesla at 19.6% of assets as of June 30, 2026. Its 0.08% expense ratio keeps costs low. It may suit investors who want a side position next to broader stock and bond funds.
What's the difference between XLY and VCR?
The differences are small. XLY owns only S&P 500 companies and charges 0.08% a year. Vanguard Consumer Discretionary ETF (VCR) charges 0.09%, and the two funds' holdings overlap by 77%. XLY is much larger, with $22.6 billion in net assets as of June 30, 2026, against $6.6 billion for VCR as of August 31, 2026. Returns have been close: over the 12 months to late October 2026, XLY lost about 2% and VCR about 2.6%.
Does XLY pay dividends?
Yes. XLY pays dividends quarterly, passing along dividends from the stocks it owns. Over the 12 months to October 29, 2026, it paid $0.93 per share. That works out to a yield of 0.8%, meaning a year's payouts divided by the share price. That is a modest income stream, so the fund's appeal rests mainly on price gains rather than income. Funds built around dividends are worth comparing for investors who need steady cash from their portfolio.
What are XLY's top holdings?
As of June 30, 2026, XLY's largest holdings were Amazon (22.2% of assets), Tesla (19.6%), Home Depot (5.8%), McDonald's (4.2%), TJX (3.9%) and Booking Holdings (3.4%). The top 10 made up 69.2% of the fund. Its index weights companies by stock market value, with limits to meet tax rules, so the S&P 500's biggest consumer discretionary names dominate. Moves in Amazon and Tesla shares can drive much of the fund's return.
How has XLY performed over the last 10 years?
XLY returned an average of 13.01% a year over the 10 years through December 31, 2025, according to its prospectus. Over five years it averaged 9.09% a year, and in 2025 it returned 7.37%. The ride was bumpy: it gained 39.64% in 2023 but lost 36.24% in 2022. Based on market price, it lost about 2% in the 12 months to October 29, 2026. Past results don't predict future returns.