Chart of the Day – August 14, 2020

XLY – the Consumer Discretionary ETF – has had a solid 2020 (up about 15% on a total return basis).  It’s now about 8% above the highs it made in late-February.

Roughly 48.5% of its weighting comes from the top 4 holdings:  AMZN, HD, MCD & NKE (holdings are listed below).  This ETF (and the sector it represents), along with XLK (Tech, which is up nearly 25% on a total return basis in 2020), are two of the more important ETFs to watch from a market sentiment standpoint.  They are the clear leaders.

CW

Source: Bloomberg & Wennco LLC

Source: BloombergSource: Bloomberg