Vanguard Consumer Discretionary ETF (NYSEARCA:VCR)
This ETF follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and provides exposure to the broad consumer discretionary sector. This is by far the cheapest choice in the space, charging investors 14 bps a year in fees while having solid volume levels. The product has managed $1.2 billion in AUM so far.
In total, the fund holds a large basket of 373 stocks with 74% allocated to large caps while mid and large caps take the remainder. The product is widely spread across a number of sectors and securities with a definite tilt toward growth stocks. Each security holds less than 5% of total assets with Comcast (CMCSA), AMZN and HD being the top three holdings (read: all the Consumer Discretionary ETFs here).
From a sector look, specialty retail accounts for one-fifth share while movies & entertainment, cable & satellite, restaurants and internet retail make up for nearly 10% each. The fund added nearly 36% so far this year and has a Zacks ETF Rank of 2 or ‘Buy’ rating with a ‘Medium’ risk outlook.
Guggenheim S&P Equal Weight Consumer Discretionary ETF (NYSEARCA:RCD)
This fund offers exposure across the consumer discretionary market with an equal weight methodology. It tracks the S&P 500 Equal Weight Index Consumer Discretionary index and holds of 83 securities in its basket. The fund has amassed $125.5 million in AUM while volume is a light. It charges a higher annual fee of 50 bps from investors.
Though large caps make up for 67% share in the fund’s portfolio, mid caps take the remaining portion and only 2% goes to small caps. Furthermore, the fund focuses on growth stocks with more than half exposure.
In terms of industries, specialty retail takes the top spot at roughly one-fifth of the total, followed by modest allocations to media and hotel restaurants. RCD is up over 36.5% in the year-to-date time frame and is poised to move higher further. This is especially true as the ETF has a Zacks ETF Rank of 1 or ‘Strong Buy’ rating with a ‘High’ risk outlook.
This article is brought to you courtesy of Eric Dutram.