Key Drivers of the Consumer Discretionary Industry
There are a number of factors that drive the consumer discretionary sector, with this sector consisting of companies that produce goods that are not required by every person, and that the consumer has a choice between 2 or more brands for a particular product. Large macro circumstances are vital to this ETF. If employment is low, then more of the population have less disposable income, therefore are less likely to spend money on these such items, therefore decreasing the price of these stocks and subsequently the ETF. Furthermore, inflation will affect saving and spending therefore will affect this sector either positively or negatively.
The type of company in this ETF will usually be involved in vital marketing campaigns with direct competitors due to this sector being highly saturated with companies producing the same or very similar products. As a result from this the Top 10 holdings shown below will be highly recognisable, international brands.
Source: SPDR ETF
Sector Top 10 Holdings (29/06/2012)
Financial Ratios (29/06/2012)
Source: Yahoo! Finance