A clear sign that consumer confidence is returning is the post-election rally in consumer discretionary stocks. The Consumer Discretionary Select Sector SPDR Fund (NASDAQ: XLY), one of the leading consumer discretionary exchange-traded funds (ETFs), is up 24.7% in the last three months. That’s pushed the fund to a gain of over 31% in 2024, outpacing the S&P 500.
This is one time when investors may be better off investing in the sector ETF as opposed to investing in individual stocks. That’s because while many of the top names in the sector are participating in the current rally, they still have some catching up to do.
