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Retail and Consumer Goods & Services ETFs List
(click on symbol for data and articles)

Global Retail and Consumer Goods & Services ETFs
iShares S&P Global Consumer Discretionary Sector Index Fund (NYSEARCA:RXI)

Broad Global Retail and Consumer Goods & Services ETFs
Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY)
Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP)
iShares Dow Jones U.S. Consumer Services Sector Index Fund (NYSEARCA:IYC)
iShares Dow Jones U.S. Consumer Goods Sector Index Fund (NYSEARCA:IYK)
Merrill Lynch Retail HOLDRs (NYSEARCA:RTH)
SPDR S&P Retail ETF (NYSEARCA:XRT)
Vanguard Consumer Discretionary ETF (NYSEARCA:VCR)
Vanguard Consumer Staples ETF (NYSEARCA:VDC)

Retail and Consumer Goods & Services Sub-Sector ETFs
iShares S&P Global Consumers Staples Sector Index Fund (NYSEARCA:KXI)

Equal Weight Retail and Consumer Goods & Services ETFs
Rydex S&P Equal Weight Consumer Discretionary ETF (NYSEARCA:RCD)
Rydex S&P Equal Weight Consumer Staples ETF (NYSEARCA:RHS)

Quant Strategy Retail and Consumer Goods & Services ETFs
First Trust Consumer Discretionary AlphaDEX Fund (NYSEARCA:FXD)
First Trust Consumer Staples AlphaDEX Fund (NYSEARCA:FXG)
PowerShares Dynamic Consumer Discretionary Sector Portfolio (NYSEARCA:PEZ)
PowerShares Dynamic Consumer Staples Sector Portfolio (NYSEARCA:PSL)
PowerShares Dynamic Food & Beverage Portfolio (NYSEARCA:PBJ)
PowerShares Dynamic Leisure & Entertainment Portfolio (NYSEARCA:PEJ)
PowerShares Dynamic Media Portfolio (NYSEARCA:PBS)
PowerShares Dynamic Retail Portfolio (NYSEARCA:PMR)

Leveraged Retail and Consumer Goods & Services ETFs
ProShares Ultra Consumer Goods ETF (NYSEARCA:UGE)
ProShares Ultra Consumer Services ETF (NYSEARCA:UCC)

Inverse (Short) Retail and Consumer Goods & Services ETFs
ProShares UltraShort Consumer Goods (NYSEARCA:SZK)
ProShares UltraShort Consumer Services (NYSEARCA:SCC)

Retail and Consumer Goods & Services Sub-Sector ETFs
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
PowerShares Dynamic Leisure & Entertainment Portfolio (PEJ)
PowerShares Dynamic Media Portfolio (PBS)
PowerShares Dynamic Retail Portfolio (PMR)

What Are They?

  • These ETFs cover the provision of consumer goods and services and their distibution and retailing. The sector is often split into two: consumer discretionary (also known as cyclical) and consumer staples (also known as non-cyclical). An alternative is to split it into consumer goods and consumer services.
  • Sector ETFs come in four levels of granularity: (1) global, (2) US or international, (3) the main industry sub-groups that comprise the sector, and (4) narrower groups of companies within the sector.
  • Specialty ETFs are also available for the Retail and Consumer Goods & Services sector, including leveraged, inverse, quant strategy, fundamental index and equal weighted ETFs. These ETFs are explained in their own sections of the ETF Finder; you can find the relevant links in Further Reading below. They usually use the primary US sector index.

Why & How To Use Them

  • Sectors go in and out of style but tend to trend upwards at the same rate, so rebalancing between sectors can provide attractive opportunities. Long term investors may therefore want to build a diversified portfolio with enough granularity to provide opportunities for rebalancing using one of the sector ETF families listed in Primary US Sector ETFs or Global Sector ETFs. For more on rebalancing, see Further Reading below.
  • If you believe that a particular sector will outperform, for example due to population aging or energy shortages, even as a long term investor you may want to overweight that sector. There are two ways to do that: (1) Assemple a diversified portfolio of broad ETFs (such as a total US market ETF, a broad foreign stock ETF and a broad bond ETF), and then add one or more of the ETFs on this page to increase exposure to this sector. (2) Build your portfolio using US sector ETFs or global sector ETFs and overweight one sector.
  • Sector ETFs are popular with short term traders and momentum investors.

What to Look Out For

  • Sector ETFs tend to be more concentrated than broad index ETFs. That means they can be more volatile, and can involve greater long term risk if the largest stocks in the ETF performs poorly.
  • Sector ETFs tend to have higher expense ratios than broader index ETFs.
  • Avoid Merrill Lynch HOLDRs: they're fixed baskets of stocks that become less and less representative of their sectors over time. The Internet HOLDRs ETF, for example, doesn't include Google.

Further Reading

This page is part of The Seeking Alpha ETF Selector which sorts ETFs by type, highlights how to use them and what to look out for, and provides links to articles that discuss key issues for investors.

Source: Retail and Consumer Goods & Services ETFs