🛍️ Consumer Discretionary ETFs
Consumer discretionary stocks represent what people want to buy — cars, restaurants, hotels, luxury goods. The sector is highly sensitive to consumer confidence and employment. When the economy is strong, discretionary spending soars; when it weakens, these stocks feel it first.
Core ETFs compared
| ETF | Expense | Holdings | Weighting | AUM |
|---|---|---|---|---|
| XLY | 0.09% | ~50 | Cap-weighted | ~$15B |
| VCR | 0.10% | ~300 | Cap-weighted | ~$5B |
| FDIS | 0.08% | ~260 | Cap-weighted | ~$2B |
| RSPD | 0.40% | ~50 | Equal-weighted | — |
The concentration problem
All cap-weighted discretionary ETFs share heavy mega-cap concentration:
| Holding | XLY | VCR | FDIS |
|---|---|---|---|
| Amazon | ~22% | ~25% | ~23% |
| Tesla | ~17% | ~14% | ~15% |
| Top 10 | ~60% | ~55% | ~55% |
A 10% Amazon drop = ~2.2% hit to XLY. You’re not getting broad discretionary exposure — you’re getting Amazon + Tesla + some other stuff.
RSPD — The equal-weight alternative
RSPD solves concentration by giving every stock equal weight:
| Factor | XLY | RSPD |
|---|---|---|
| Amazon weight | ~22% | ~2% |
| Tesla weight | ~17% | ~2% |
| Top 10 weight | ~60% | ~20% |
| Expense | 0.09% | 0.40% |
RSPD outperforms when: Breadth expanding, smaller stocks catching up, volatility elevated
RSPD underperforms when: Mega-caps leading, quality flight, low volatility
Which ETF when?
| Situation | Best Choice |
|---|---|
| Options trading | XLY (best liquidity) |
| Long-term, cost-focused | FDIS (0.08%) |
| Broad diversification | VCR (~300 holdings) |
| Reduce mega-cap concentration | RSPD |
| High conviction on AMZN/TSLA | XLY |
Leveraged options
| ETF | Leverage | Expense |
|---|---|---|
| WANT | +3x daily | 0.97% |
| PASS | -3x daily | 1.01% |
Quick reference
| ETF | Type | Best For |
|---|---|---|
XLY | Core | Trading, options |
VCR | Core | Diversification |
FDIS | Core | Lowest cost |
RSPD | Equal-weight | Breadth bet |
For signal interpretation and trading strategies, see Consumer Signals.