iShares US Consumer Discretionary ETF’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy earns an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in liquidity exposure and quality exposure compared with category peers. Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Amazon

Tesla

Costco

Home Depot

Walmart

Netflix

Disney

McDonald's

Uber

Lowe's

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. iShares US Consumer Discretionary ETF earns an Average Process Pillar rating. The most important driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 92% also contributes to the process. Lastly, the process is limited by the fund's mediocre long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the investment results of the Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index.  The fund generally will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The underlying index measures the performance of the consumer discretionary sector of the U.S. equity market and as defined by FTSE Russell. 

 The portfolio is overweight in communication services and consumer defensive relative to the category average by 10.3 and 7.2 percentage points, respectively. The sectors with low exposure compared to category peers are consumer cyclical and industrials, underweight the average by 13.7 and 4.9 percentage points of assets, respectively. The portfolio is composed of 182 holdings and is relatively concentrated. In particular, 51.7% of the strategy's assets are housed within the top 10 holdings, compared with the typical peer's 45.5%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 27% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

iShares’s equity team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are three managers listed on the fund: Paul Whitehead, Jennifer Hsui, Greg Savage. The team is well equipped, with an average of 18 years of portfolio management experience. Together, they manage a total of 257 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares U.S. Consumer Services ETF

IYC tracks a market-cap-weighted index of US companies that provide consumer services.

The iShares U.S. Consumer Discretionary ETF (IYC) was launched on 06/12/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Consumer Discretionary - Broad segment of the equity market.

Should You Invest in the iShares U.S. Consumer Discretionary ETF (IYC)?

This article provides a monthly analysis of subsector metrics in the Consumer Discretionary sector.

IYC: Consumer Discretionary Dashboard For February

adidas AG

Fidelity MSCI Consumer Discretionary ETF

NIKE

Vanguard Consumer Discretionary ETF

Consumer Discretionary Select Sector SPDR Fund

The consumer discretionary sector is lagging behind the SP500. In 2024, there will be the European Soccer Championship in June and the Olympic Games in July. Some of the sportswear manufacturers seem to be trading at great value in a statistically strong period.

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Amplify Travel Tech ETF

First Trust NASDAQ Global Auto Index Fund

Defiance Hotel Airline and Cruise ETF

Fidelity MSCI Consumer Staples ETF

First Trust Consumer Discretionary AlphaDEX Fund

First Trust Consumer Staples AlphaDEX Fund

Goldman Sachs Future Consumer Equity ETF

iShares Evolved U.S. Discretionary Spending ETF

First Trust S-Network E-Commerce ETF

iShares U.S. Consumer Goods ETF

ALPS Global Travel Beneficiaries ETF

iShares Global Consumer Staples ETF

Tema Luxury ETF

Roundhill S&P Global Luxury Etf

Direxion Daily Travel & Vacation Bull 2X Shares

Invesco DWA Consumer Cyclicals Momentum ETF

Invesco S&P SmallCap Consumer Staples ETF

 Invesco S&P SmallCap Consumer Discretionary ETF

Invesco DWA Consumer Staples Momentum ETF

Invesco S&P 500 Equal Weight Consumer Discretionary ETF

Invesco S&P 500 Equal Weight Consumer Staples ETF

VanEck Vectors Retail ETF

iShares Global Consumer Discretionary ETF

Vanguard Consumer Staples ETF

Consumer Staples Select Sector SPDR Fund

SPDR S&P Retail ETF

Some consumer discretionary stocks have performed better than others. Luxury, homebuilding, and travel have been a bright spots.

Outlook For Consumer Discretionary Stocks Amid Shifting Spending Patterns

Consumer discretionary sector predicted to enter bear market due to macroeconomic headwinds. Resumption of student loan payments on Oct. 01, 2023 could impact market. Other factors include skyrocketing credit card debt and debt servicing as a percentage of disposable income.

Macro Headwinds Ahead, Expect Volatility In Consumer Discretionary Select Sector SPDR ETF

The reality is that consumers aren't stupid, and can forecast their budgets reasonably well in the face of rate hikes. With continued strength in consumer discretionary, it looks like sentiment remains strong for the economy, which is a self-fulfilling prophecy. The problem is paying a 26x P/E for discretionary when we are still in a tighter environment in terms of the standard set by risk-free rate for investments. Pass.

IYC: Lack Of Consumer Trepidation Signals Soft Landing

Advisorshares Restaurant ETF

iShares U.S. Aerospace & Defense ETF

Vanguard Small Cap Value ETF

Technology Select Sector SPDR Fund

Health Care Select Sector SPDR Fund

The U.S. debt deal may produce these winners and losers in the near term.

U.S. Debt Deal: ETFs to Win/Lose

iShares Global Clean Energy ETF

iShares U.S. Healthcare ETF

iShares U.S. Real Estate ETF

SPDR S&P Insurance ETF

VanEck Vectors Agribusiness ETF

Vanguard Real Estate ETF

Energy Select Sector SPDR Fund

SPDR S&P Transportation ETF

The annual inflation rate in the United States dropped to 4.9% in April 2023, the lowest since April 2021.

Sector ETFs Likely to Gain on April Inflation Data

IYC is iShares' ETF for gaining direct exposure toward the Consumer Discretionary sector. Earnings multiples and growth metrics for the Consumer Discretionary sector suggest a fair valuation.

IYC: Is The Alternative Consumer Discretionary ETF Attractive?

Invesco Dynamic Leisure and Entertainment ETF

Consumer spending increased the most in nearly two years in January amid a surge in wage gains. Rising spending bodes well for the consumer discretionary sector.

Higher Spending to Boost Consumer Discretionary ETFs

Americans are expected to shell out $25.9 billion on Valentine's Day this year, up from $23.9 billion in 2022 and one of the highest spending on record.

Valentine's Day Spending to Hit Second Highest: ETFs to Splurge

The first month of 2023 (and the last month of the retail industry's Q4 2022) saw America's largest party supply store file for Chapter 11 bankruptcy, a move that the StarMine credit models had predicted about a year ago. According to StarMine, Bed Bath & Beyond scores in the bottom decile when it comes to the Relative Valuation, Val-Mo, and Short Interest models.

Inflation Continues To Dampen U.S. Retail Sales While Luxury Shines

Advisorshares Hotel ETF

Global X Funds - Global X E-commerce ETF

Nasdaq F&B Shs Nasdaq Food & Beverage

Amplify Online Retail ETF

iShares Evolved U.S. Consumer Staples ETF

Proshares Online Retail ETF

Invesco Dynamic Food & Beverage ETF

40% of the online merchandise for U.S. retailers is on sale as we enter Black Friday week of 2022. The average percent discount in November is 36.3%; this has come down from the YTD levels of 37.6% and is significantly below the pre-pandemic levels.

U.S. Retailers Ramp Up Black Friday Deals

John Hancock Multifactor Consumer Discretionary ETF

John Hancock Multifactor Consumer Staples ETF

The mismatch between supply and demand within the retail space has reversed in advance of this year's holiday shopping season. Higher prices that retailers have successfully implemented since the pandemic are not going to reverse entirely.

Retail Outlook: Who Will Be In The Driver's Seat This Holiday Season?

Fidelity MSCI Telecommunication Services Index ETF

Fidelity MSCI Information Technology Index ETF

iShares U.S. Technology ETF

Invesco S&P 500 Equal Weight Technology ETF

Vanguard Information Technology ETF

Vanguard Telecommunication Services ETF

Last week was a big week for tech earnings, with many of the largest U.S. companies reporting second quarter results and in some cases offering guidance for what's ahead in the second half. Advisors who have embraced ETFs benefit from diversification that reduces the impact if one company misses (or exceeds) expectations.

Earnings Season Can Be Confusing for Advisors

United States Brent Oil Fund LP

Invesco DB Energy Fund

Invesco DB Oil Fund

ProShares K-1 Free Crude Oil Strategy ETF

UBS London ETRACS S&P GSCI Crude Oil Total Return Index ETN 2016-22.2.46 Lkd to S&P GSCI Crude Oil TR Idx Series B

iPath Pure Beta Crude Oil ETN

Elements Rogers International Commodity Index-Energy Total Return ETN

United States 12 Month Oil Fund LP

United States Oil Fund LP

Credit Suisse X-Links Crude Oil Shares Covered Call ETN

As prices rise, consumers are put under extreme pressure to keep their normal standard of living. As inflationary pressures continue, consumers make necessary sacrifices to manage their budgets – often going into debt in the process.

Crude Oil Collapsed Below $100PPB - Has The Fed Broken Inflation? (Technical Analysis)

The broader retail space has been weak relative to the S&P 500 so far this year. On a YTD basis, the VanEck Vectors Retail ETF has underperformed the S&P 500 by 4.5 percentage points, trading down by 18.2% as of today.

Weakness In Retail

iShares S&P Mid-Cap 400 Value ETF

Mid-cap and consumer ETFs have traded at a outsized volume yesterday.

2 ETFs to Watch for Outsized Volume on Mid-Cap & Consumer

First Trust Nasdaq Retail ETF

Retail sales have posted gains in four consecutive months but November is the slowest pace of the four. Most categories were up in November though breadth was weaker than in October.

Retail Spending Posted A Modest Gain In November

With the economy regaining momentum after a pandemic slowdown buoyed by the biggest vaccination drive and reopenings, the consumer discretionary sector looks like an exciting bet at present.

5 Consumer Discretionary ETFs Rising to New Highs

iShares U.S. Utilities ETF

iShares U.S. Financials ETF

iShares U.S. Industrials ETF

iShares U.S. Basic Materials ETF

iShares U.S. Telecommunications ETF

Plus, some new closures are on the books.

ETF Odds & Ends: Busy Week Of Launches

Fernandes: U.S. retail sales in June 2020 were already higher than in December 2019. Fernandes: US consumer is in a much better position than they were in 2008.

What The U.S. Retail Sales Recovery Says About Corporate Earnings

SonicShares Airlines, Hotels, Cruise Lines ETF

Worries about virus impacts on balance sheets may be obscuring business resilience. Lodging and leisure issuers have provided outlooks for 3Q that have begun to ease investor concerns.

Travel And Leisure: Better Than Advertised?

Short-term trends in airline bookings are not as foretelling as they have been in the past - new variants of COVID-19 have stalled the recovery in the travel industry from what the market thought would be a strong upturn, and many travelers are either delaying travel or booking last-minute travel due to uncertainty in travel restrictions and closures. Longer-term industry forecasts, however, point to strong underlying fundamentals and expectations for air travel demand to return to pre-pandemic levels within the next couple of years.

Strong Airline Demand Gives Wings To The Travel Industry

Direxion Daily Retail Bull 3X Shares

PrShs UlSh CnSr Shs

ProShares UltraShort Consumer Goods

ProShares Ultra Consumer Services

ProShares Ultra Consumer Goods

Retail sales and food services spending rose 0.7 percent in August following a 1.8 percent drop in July. The three-month annualized growth rate is -0.9 percent though the level of sales is still well above the most recent nine-year trend. From a year ago, total retail sales are up 15.1 percent.

Core Retail Sales Post A Strong Gain In August

News for iShares U.S. Consumer Services ETF ETF (IYC)