XLYETF

XLY, a passively managed ETF tracking the Consumer Discretionary sector, has lost 3.57% year-to-date and 1.55% over the past year as of October 20, 2026. With a low expense ratio of 0.08% and $22.37 billion in assets, it offers diversified exposure but carries medium risk with a beta of 1.24. The fund received a Zacks ETF Rank of 3 (Hold), with alternatives like VCR and ITB also available for consumer discretionary exposure.

The First Trust Consumer Discretionary AlphaDEX ETF (FXD) receives a Zacks ETF Rank of 4 (Sell) and is not recommended for investors seeking consumer discretionary exposure. With a 0.6% expense ratio that is higher than competitors, modest year-to-date performance of -2.08%, and a beta of 1.13, the ETF is considered a medium-risk choice. Better alternatives include Vanguard Consumer Discretionary Index Fund ETF Shares (VCR) and State Street Consumer Discretionary Select Sector SPDR ETF (XLY), which offer lower expense ratios of 0.09% and 0.08% respectively.

The iShares U.S. Home Construction ETF (ITB) is reviewed as a passively managed fund tracking the home construction sector with $2.56 billion in assets. However, it receives a Zacks ETF Rank of 4 (Sell) due to high risk (beta of 1.27), concentrated holdings, and poor year-to-date performance of -9.15%. Better alternatives include Vanguard Consumer Discretionary Index Fund (VCR) and State Street Consumer Discretionary Select Sector SPDR ETF (XLY), which offer lower expense ratios and broader diversification.