Below is a chart and brief excerpt from today's Early Look written by Macro analyst Taylor Burnette.
|
The XLY contains 54 tickers, and the top 3 holdings represent 46.4% of the portfolio: AMZN (24.5%), TSLA (16.7%) and HD (4.9%). We often view these ETFs as temperature gauges for how sectors across the country may be performing. I will let you argue that AMZN is a good indicator of consumer discretionary spending, but TSLA wasn’t even a top 3 seller of vehicles last year, yet its weighting is larger than HD, MCD, LOWE and NKE. Said another way, as investors, we need to know what we are comparing and analyzing. We need to do a little digging under the surface and figure out why we are making the decisions we are making with the information that we have. |
