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A Glum View On A High-Flying Sector

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The consumer discretionary sector, the fourth-largest sector weight in the S&P 500, was the best-performing group in the benchmark U.S. index last year as the Consumer Discretionary Select Sector SPDR (NYSE: XLY) was the top performer among the nine sector SPDR exchange trade funds with a nearly 10 percent gain.

In fact, XLY was last year's best diversified consumer discretionary ETF as its fortunes were boosted by the likes of Amazon.com, Inc. (NASDAQ: AMZN), Home Depot Inc (NYSE: HD) and McDonald's Corporation (NYSE: MCD). XLY is home to several of last year's best Dow stocks, including Home Depot, McDonald's and Nike Inc (NYSE: NKE).

Not surprisingly, investors are now faced with the specter of paying up for the privilege of getting involved with XLY and its high-flying components.

The S&P 500 currently ...

/www.benzinga.com/trading-ideas/long-ideas/16/01/6108948/a-glum-view-on-a-high-flying-sector alt=A Glum View On A High-Flying Sector>Full story available on Benzinga.com

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