Consumer Discretionary Sector Funds
We expect that outperformance to continue. Consumers are carrying much less debt on their personal balance sheets, the housing and jobs markets are improving and auto sales are booming (witness the power of pent-up demand.) And, of course, we’ve got the holiday shopping season just around the corner.
Top Sector ETF — Vanguard Consumer Discretionary ETF (VCR): Top holdings include Comcast (CMCSA) and Home Depot (HD) and Amazon (AMZN), and the expense ratio of 0.14% can’t be beat. Sure, you could buy the equivalent mutual index fund — Vanguard Consumer Discretionary Index Fund Admiral Shares (VCDAX) — but the minimum investment is $100,000.
Top Sector Mutual Fund — Fidelity Select Consumer Discretionary Fund (FSCPX): Top holdings include Comcast and Disney (DIS), it’s crushing its benchmark for the year-to-date, and expenses of 0.84% is a bargain price for active management.