What is the expense ratio for IYC and XLY?

IYC has an expense ratio of 0.37%, while XLY charges 0.08%. This means XLY's cost is 0.29 percentage points lower than IYC's. Lower expenses can potentially enhance net returns over time, all else being equal. It is important to consider the total cost of ownership when comparing similar investment vehicles, as even small differences can accumulate over longer horizons.

How do IYC and XLY compare regarding dividend yields?

IYC provides a dividend yield of 0.54%, whereas XLY offers 0.83%. This makes XLY's yield higher by 0.29 percentage points. Dividend yields fluctuate and are not guaranteed, so they should not be the sole factor in decision-making. Understanding distribution frequencies and potential changes in underlying company dividends is crucial for investors focused on income generation within the consumer discretionary sector.

What are the top holdings in XLY compared to IYC?

XLY's top holdings include Amazon at 23.36% and Tesla at 17.79%, showing significant concentration. In contrast, IYC holds Amazon at 14.88% and Tesla at 7.92%, offering less concentration. Both funds share several top holdings, including Home Depot, McDonald's, and TJX. Investors should note that high concentration in specific stocks can increase volatility and risk within the portfolio, impacting overall performance.

How do the inception dates of IYC and XLY differ?

IYC was launched on June 12, 2000, giving it a long operational history. XLY was established on December 16, 1998, providing it with an even longer track record. The inception date can be relevant for assessing how each fund has performed through different market cycles. However, past performance does not guarantee future results, and it is essential to consider other factors like fees and holdings.

What is the total net asset value of IYC?

IYC manages $1.1 billion in net assets, which is significantly smaller compared to other similar funds. A smaller asset base might affect trading volume and liquidity. While size alone does not determine fund quality, it can impact the ease of buying and selling shares. Investors should consider liquidity alongside other factors such as expense ratios and historical performance when evaluating the fund.

Why is XLY's asset size considered a positive aspect?

XLY manages $21.8 billion in net assets, indicating strong liquidity and investor demand. Larger asset sizes often lead to better trading volumes and narrower bid-ask spreads, making it easier to enter or exit positions. This can be particularly appealing to institutional investors and traders who require substantial liquidity. However, size does not necessarily correlate with performance or suitability for individual investor goals.

How do ETF distributions differ between IYC and XLY?

Both IYC and XLY distribute dividends, but the frequency and amounts can vary based on the underlying holdings. IYC distributes at a yield of 0.54%, while XLY distributes at 0.83%. Distributions are typically made quarterly and can change based on the performance of the companies within the fund. Investors should monitor distribution announcements and understand how they might affect tax implications and reinvestment strategies.

What is the risk of concentration in XLY compared to IYC?

XLY exhibits higher concentration with Amazon at 23.36% and Tesla at 17.79%, totaling over 40% in just two holdings. IYC's top two stocks, Amazon and Tesla, account for 22.80% combined. Higher concentration can lead to greater volatility if one of the top performers declines significantly. Investors should weigh the potential impact of concentrated positions against their own risk tolerance and diversification goals.

How do the index tracking methodologies of IYC and XLY compare?

The index tracking methodologies for both IYC and XLY are currently not available for review. Without this information, it is challenging to fully understand how each fund replicates its respective index. Investors should look for transparency in tracking methods, as this can affect how closely the fund tracks its benchmark and the associated risks. Consider consulting additional resources for insights into the funds' strategies.

Which fund is more cost-effective, XLY or IYC?

XLY is more cost-effective with an expense ratio of 0.08%, compared to IYC's 0.37%. Over time, the lower fee structure of XLY can result in higher net returns, assuming all other factors remain constant. However, cost efficiency should be balanced against other considerations such as holdings concentration, dividend yields, and liquidity to determine the best fit for individual investment objectives.

What does a 0.29% fee difference mean for long-term investment?

A 0.29 percentage point fee difference between XLY and IYC may seem small, but it can significantly impact long-term returns. Over a decade, this difference could result in notable gains or losses, depending on the direction of the comparison. Lower fees allow more of the investment to compound, potentially leading to better outcomes. Always consider the cumulative effect of fees when evaluating investment options.

What is the importance of the top-10 holdings overlap between IYC and XLY?

IYC and XLY share five of their top-10 holdings, including Amazon, Tesla, Home Depot, McDonald's, and TJX. This overlap suggests similar exposure to major consumer discretionary stocks. However, the weightings differ, with XLY having higher concentrations in Amazon and Tesla. Understanding the overlap helps investors grasp the degree of similarity and potential for diversified exposure within the sector.

IYC vs XLY

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare IYC (iShares US Consumer Discretionary ETF) and XLY (Consumer Discret Sel Sect SPDR ETF). This page details expense ratios, top holdings, dividend yields and how each fund tracks its market. Both offer exposure to consumer cyclical sectors, with XLY showing lower fees than IYC. Educational content, not financial advice.

Compare IYC (iShares US Consumer Discretionary ETF) and XLY (Consumer Discret Sel Sect SPDR ETF). This page details expense ratios, top holdings, dividend yields and how each fund tracks its market. B...

Fund Snapshot

Key Fund Metrics

IYC

Metric

XLY

0.37%

Expense Ratio

0.08%

0.54%

Dividend Yield

0.83%

$1.15B

Net Assets

$21.78B

161

Holdings

50

Jun 12, 2000

Inception Date

Dec 16, 1998

–

Index Tracked

–

Consumer Cyclical

Fund Category

Consumer Cyclical

XLY costs about $29.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IYC	XLY
AMZNAmazon.com, Inc.	14.88%	23.36%
TSLATesla, Inc.	7.92%	17.79%
HDThe Home Depot, Inc.	3.95%	5.18%
MCDMcDonald's Corporation	3.15%	4.45%
TJXThe TJX Companies, Inc.	2.51%	3.84%

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Investment Analysis

IYC

Pros

The fund charges a 0.37% annual management fee.
It has $1.1 billion in net assets under management.
It was launched in June 2000, offering a long operating history.

Considerations

It pays a lower dividend yield of 0.54%.
Top holdings like Amazon and Tesla are less concentrated than peers.
Its index tracking methodology is currently not available for review.

XLY

Pros

It offers a very low 0.08% expense ratio.
It manages $21.8 billion in assets, indicating strong liquidity.
It provides a higher dividend yield of 0.83%.

Considerations

The fund has significant concentration with Amazon at 23.36%.
Tesla represents a high 17.79% weight in the portfolio.
Similar to the peer, its index methodology is not available.

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About IYC and XLY

IYC (IYC)

iShares US Consumer Discretionary ETF (IYC) is a passively managed exchange-traded fund that provides investors with diversified exposure to US consumer discretionary companies — firms whose revenues are sensitive to consumer spending, including retailers, automakers, leisure and consumer services. As an ETF from the iShares family, IYC holds a broad basket of equities to mirror a consumer-discretionary benchmark, offering easier diversification than picking individual stocks. It is traded like a share on exchanges, so liquidity, spreads and intraday pricing matter. Returns will rise and fall with the sector and underlying companies; consumer discretionary can outperform in periods of strong economic growth and underperform during slowdowns. Market-cap weighting means larger companies typically have bigger influence on performance. This summary is educational and not personal financial advice; check the fund’s factsheet for holdings, fees and index methodology, and consider your risk tolerance and time horizon before investing.

XLY (XLY)

XLY (Consumer Discret Sel Sect SPDR ETF) is a sector-focused exchange-traded fund that provides targeted exposure to US consumer discretionary companies — firms in retail, leisure, autos, media and related services. As a sector ETF, it concentrates on businesses whose revenues are sensitive to consumer spending and economic cycles, so it tends to be more growth-oriented and can be more volatile than broad-market funds. Investors use XLY to gain concentrated exposure to trends in retail, e-commerce, travel and durable goods, or to express a view on consumer demand. Because it focuses on a single sector, diversification is limited and performance can swing with the economic cycle. This summary is for educational purposes only and not personalised advice. Consider your investment goals, risk tolerance and the ETF’s suitability for your portfolio; values and income can fall as well as rise.

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