Back to the ETFs Directory

ETF Sector: Consumer Discretionary

ETFs, or exchange traded funds, are a type of investment fund that track a basket of assets, such as stocks, bonds, or commodities. ETFs are traded on stock exchanges, and they typically have lower fees than traditional mutual funds. Consumer discretionary ETFs are ETFs that track companies in the consumer discretionary sector. This sector includes companies that produce goods and services that are not essential for everyday life. Examples of consumer discretionary companies include automakers, retailers, and media firms. These companies tend to be sensitive to economic cycles, as consumers typically spend more money on discretionary items when the economy is strong and curtail their spending during economic downturns. As a result, consumer discretionary ETFs can be volatile, but they can also offer higher returns than ETFs that track other sectors. For investors looking for exposure to the consumer discretionary sector, ETFs provide an easy and cost-effective way to do so.