About XLY ETF
The State Street Consumer ETF (XLY) is the largest consumer sector ETF with more than $10B in AUM and is managed by State Street Global Advisors that has a total AUM of $2.73T. XLY is an exchange-traded fund incorporated in the USA in Dec 1998. It is the largest consumer sector ETF, with more than $10 billion in assets under management (AUM).
About the Fund Manager:
State Street was incorporated in 1792, has four decades of experience meeting complex client needs and is the third largest asset manager in the world managing $2.73T. It is the 2nd United States bank on the list of oldest banks in continuous operation. State Street is ranked 14th on the list of largest banks in the United States by assets.
The ETF tracks the performance of the Consumer Discretionary Select Sector Index holding large-cap companies incorporated in the US.
XLY has invested 100% in Consumer. It invests in industries such as automobiles and components, consumer durables, apparel, hotels, restaurants, leisure, media, and retailing.
XLY has invested 100% of its assets in the U.S.
It allows investors to take tactical positions at a more targeted level than traditional style-based investing. The ETF allocates its holdings using a modified market cap approach, investing at least 95% of its assets in the index stocks.
According to ETFdb.com, "The ETF offers exposure to the consumer discretionary sector, making it an appealing option for investors looking to implement a sector rotation strategy or tilt exposure towards corners of the U.S. market that may perform well during a recovery."
1. Fund Factsheet
2. ETF Monkey Focus: Consumer Discretionary ETFs
3. Consumer Discretionary ETFs Head to Head: XLY vs. VCR
4. Which Consumer-Related ETFs Should Investors Buy?
How did we identify this ETF:
A complete pool of 2100+ ETFs is screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R-Squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the in-house research/quant analysts team. The fund's expense ratio is among the lowest in the segment and its AUM and daily trading volume (7.1M) are much more than its competitors (VCR and IYC) that makes it the most liquid consumer sector ETF. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.