Consumer Sector ETFs: XLY Offers Deeper Liquidity, While FDIS Provides Broader Diversification

Jake Lerch, The Motley Fool

Thu, May 28, 2026 astatine 9:20 AM CDT 5 min read

The Fidelity MSCI Consumer Discretionary Index ETF (NYSEMKT:FDIS) offers broader diversification crossed hundreds of holdings, portion the State Street Consumer Discretionary Select Sector SPDR ETF (NYSEMKT:XLY) provides concentrated vulnerability to large-cap leaders.

These funds people the user cyclical sector, capturing companies that trust connected discretionary spending and economical strength. While the Fidelity money tracks a broader scale that includes hundreds of smaller firms, the State Street money focuses exclusively connected large-cap leaders successful the S&P 500. Investors whitethorn take based connected their penchant for wide marketplace practice versus bluish spot concentration.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

Both ETFs are highly cost-efficient, with disbursal ratios of 0.08%, good beneath the mean for sector-specific funds. This low-cost operation helps minimize the resistance connected performance. Additionally, some funds offered identical trailing-12-month dividend yields of 0.70% arsenic of May 27, 2026.

Performance & hazard examination

What's wrong

The Fidelity MSCI Consumer Discretionary Index ETF (FDIS) launched successful 2013 and holds 274 stocks. Its portfolio is composed of 97.00% user cyclical, 1.00% user defensive, and 1.00% exertion stocks. Its largest positions see Amazon.com (NASDAQ:AMZN) astatine 24.15%, Tesla (NASDAQ:TSLA) astatine 17.83%, and Home Depot (NYSE:HD) astatine 4.53%. The Fidelity money has a trailing-12-month dividend of $0.74 per share.

In contrast, the State Street Consumer Discretionary Select Sector SPDR ETF (XLY), launched successful 1998, holds 48 stocks. It consists of 98.00% user cyclical, 1.00% connection services, and 1.00% exertion stocks. Its largest positions see Amazon.com astatine 27.38%, Tesla astatine 20.21%, and Home Depot astatine 5.12%. This money paid $0.89 per stock implicit the trailing 12 months.

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