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Media ETFs look to join discretionary party

By Benzinga
Asset Management

The consumer discretionary sector is the best performer in the S&P 500 this year and as measured by the Consumer Discretionary Select Sector SPDR XLY 0.23%, the battle is not even close. XLY, the largest consumer discretionary exchange traded fund by assets, is up 13.9 percent year-to-date, an advantage of 600 basis points over the second-best SPDR, the Technology Select Sector SPDR XLK 0.06%.

With the strength of the broader discretionary group in mind, perhaps it is surprising media stocks have been laggards. Although Walt Disney Co DIS 0.42% is one of the best-performing member of the Dow Jones Industrial Average this year, the PowerShares Dynamic Media Portfolio PBS 0.11%, an ETF that allocates 5.1 percent of its weight to Disney, has posted a year-to-date gain of just 4.6 percent.

Earnings reports from 21st Century Fox FOXA 2.01% and Time Warner Cable Inc. TWC 0.45% could provide PBS with the spark the ETF needs. Those stocks combine for 9.6 percent of the ETF's weight.

Read more at Benzinga.
Photo: Bruce Tuten 

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