Amid the recent tech selloff, exchange-traded fund (ETF) investors are probably wondering which equity sectors they can stash their capital into for refuge—one place is the consumer sector with companies like Nike staving off the recent losses. The shoe company is doing favors for ETFs with heavy holdings of Nike.
“Exchange-traded funds with big exposure to Nike, Inc. avoided the losses of the broader market Wednesday, as shares of the sports apparel maker surged nearly 10% on a rosy earnings report. The Amplify CWP Enhanced Dividend Income ETF (DIVO), which has nearly 6% of its holdings in the stock, was virtually unchanged,” a MarketWatch report explained.
“The iShares Evolved U.S. Discretionary Spending ETF (IEDI) and the QRAFT AI-Enhanced U.S. High Dividend ETF (HDIV), both of which have about 6% of their holdings in Nike stock, were both virtually unchanged for the day. The First Trust Dow 30 Equal Weight ETF (EDOW) with a 4% holding, was down 0.4%. That beat the 0.9% decline in the S&P 500. Wednesday marked Nike’s biggest gain since March 24, according to FactSet data,” the report added.
NKE data by YCharts
That said, here are a couple of funds that have exposure to Nike. First up is the Consumer Discret Select Sector SPDR ETF (NYSEArca: XLY), which at 6.7%, currently has the largest holdings of the shoe company—the fund’s fourth-largest holding as of September 23.
XLY seeks investment results that correspond to the price and yield performance of publicly traded equity securities of companies in the Consumer Discretionary Select Sector Index. The index includes securities of companies from the following industries: retail; hotels, restaurants and leisure; textiles, apparel, and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services.
XLY also gives investors cost-effective exposure with its 0.13% expense ratio. Per Yahoo! Finance performance numbers, XLY is up 14% year-to-date.
Another fund to look at is the iShares U.S. Consumer Goods ETF (IYK). IYK seeks to track the investment results of the Dow Jones U.S. Consumer Goods Index composed of U.S. equities in the consumer goods sector.
The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. The underlying index measures the performance of the consumer goods sector of the U.S. equity market. The fund may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents.
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