The Bullish Bears break down a list of the largest consumer discretionary stocks and ETFs list. Consumer discretionary stocks refer to companies that produce and sell goods and services that are not essential for everyday living. These companies often have strong brand loyalty and can benefit from an expanding economy, as consumers are more likely to make discretionary purchases when they have more disposable income. However, consumer discretionary stocks can also suffer during economic downturns, as consumers may cut back on these purchases.
These stocks can also be sensitive to supply chain disruptions, inflation, and price sensitivity, as consumers can choose to buy cheaper alternatives or not make discretionary purchases.
Click any symbols of our consumer discretionary stocks list to get a stock quote and overview of each company.
We are not affiliated with nor endorse any of these companies, and nothing on this site constitutes a recommendation to buy or sell.
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List of the Largest Consumer Discretionary Stocks and Companies
| Symbol | Name | Industry |
|---|---|---|
| AMZN | Amazon.com, Inc. | Internet Retail |
| TSLA | Tesla, Inc. | Auto Manufacturers |
| HD | The Home Depot, Inc. | Home Improvement Retail |
| MCD | McDonald's Corporation | Restaurants |
| NKE | NIKE, Inc. | Footwear & Accessories |
| LOW | Lowe's Companies, Inc. | Home Improvement Retail |
| SBUX | Starbucks Corporation | Restaurants |
| TJX | The TJX Companies, Inc. | Apparel Retail |
| BKNG | Booking Holdings Inc. | Travel Services |
| ABNB | Airbnb, Inc. | Travel Services |
| ORLY | O'Reilly Automotive, Inc. | Specialty Retail |
| GM | General Motors Company | Auto Manufacturers |
| MAR | Marriott International, Inc. | Lodging |
| F | Ford Motor Company | Auto Manufacturers |
| AZO | AutoZone, Inc. | Specialty Retail |
| ROST | Ross Stores, Inc. | Apparel Retail |
| CMG | Chipotle Mexican Grill, Inc. | Restaurants |
| YUM | Yum! Brands, Inc. | Restaurants |
| LVS | Las Vegas Sands Corp. | Resorts & Casinos |
| HLT | Hilton Worldwide Holdings Inc. | Lodging |
Characteristics
The consumer discretionary stocks list represents companies that provide non-essential goods and services, typically driven by consumer preferences and discretionary income. These stocks are influenced by economic cycles, consumer sentiment, and trends. Here are some of their characteristics.
Consumer discretionary stocks are often cyclical, meaning their performance is tied to the overall economic conditions. During economic expansions, consumers have more discretionary income, leading to increased spending on non-essential items. These stocks can also be more volatile than other sectors. Investors may experience significant price fluctuations based on market sentiment and economic outlook. Check out our consumer discretionary stocks list above.
Economic Indicators
Consumer discretionary stocks are responsive to economic indicators like unemployment rates, GDP growth, and consumer confidence. In times of economic growth, consumers are more likely to spend on discretionary items, boosting the performance of these stocks. Remember that when looking at a consumer discretionary stocks list.
Consumers’ trends and preferences are changing quicker than ever. What does that mean for a consumer discretionary stocks list? Companies in this sector must quickly adapt to evolving tastes and lifestyle choices to stay competitive. Furthermore, strong brand recognition is crucial for consumer discretionary companies. Apple is a perfect example of brand recognition and lifestyle choice. Despite Apple’s premium pricing, consumers often perceive them as aspirational and are willing to pay a premium for the brand’s reputation.
Many consumer discretionary companies operate globally, making them vulnerable to economic conditions in different regions. Currency fluctuations, geopolitical events, and global economic trends can affect their performance. When Nike’s supply chain is disrupted in one part of the world, it affects its ability to meet global demand. Be sure to check out our consumer discretionary stocks list above.
E-Commerce Impact
The rise of e-commerce has had a significant impact on these stocks. Companies must adapt to changing retail landscapes and online shopping trends to maintain competitiveness. Many retailers like Macy’s failed to adapt to online shopping needs, which forced its customers to fill their needs elsewhere. If you’re looking for other stocks to trade, check out our consumer discretionary stocks list above.
Companies in this consumer discretionary stocks list sector often need to invest in innovation and effective marketing to stand out in a crowded market. Successful product launches and marketing campaigns can positively impact stock performance. Today, when we think of electric cars, the first brand that comes to mind is Tesla. Elon Musk created a product that stands out and that people talk about constantly.
A consumer discretionary stocks list can be divided into luxury and non-luxury segments. Luxury goods and services may be more sensitive to high-net-worth individuals’ spending patterns and economic downturns.
Below are some of the largest consumer discretionary stocks list in the US. As you browse them, you will see how their cyclical nature can impact their stock performance. When market conditions are favorable, consumers will use them frequently. These stocks operate in various industries, such as
- Retail
- Apparel and footwear
- Automobile
- Home Improvement
- Leisure
- Media
- Electronics
- Sporting goods
- Fitness and more
AMZN Stock Rover Report
List of the Best Consumer Discretionary Stocks
1. Amazon (NASDAQ: AMZN)
Amazon is a part of our consumer discretionary stocks list. They are primarily an e-commerce giant that sells a vast array of non-essential products, which sell better during favorable market conditions. The company’s constant innovation and expansion into new product categories and services align with the characteristics of the consumer discretionary sector. Amazon continually introduces new features, services, and technologies such as Amazon Web Services, Amazon Prime Video, Amazon Music, and more to meet evolving consumer demands. Their business model has been transformative, and its stock performance reflects consumer trends and the company’s ability to adapt to changing market dynamics.
2. Tesla (NASDAQ: TSLA)
Tesla is primarily an electric vehicle (EV) manufacturer and clean energy company. While transportation is essential, purchasing electric vehicles is discretionary because it represents a choice beyond basic transportation needs. Consumers can opt for traditional gasoline vehicles, making Tesla’s products non-essential. Early models were considered pillars in the EV sector. Many rushed towards this innovative technology, which made Tesla a luxury brand. Are the Tesla competitors on our consumer discretionary stocks list?
3. The Home Depot (NYSE: HD)
Home Depot operates as a major home improvement retailer, providing consumers a wide range of products and services for various home-related projects. The company’s performance is tied to economic cycles and housing trends. Consumers are more likely to engage in home improvement projects during economic expansions. Conversely, economic downturns may impact consumers’ willingness to invest in discretionary home improvement items.
4. McDonald’s (NYSE: MCD)
In its early days, McDonald’s was an affordable and welcoming place to eat. In the last decade, prices have risen exponentially, and it is no longer the most economical option. Today, consumers choose McDonald’s based on personal preferences, taste, and convenience rather than immediate needs for sustenance. Factors beyond basic nutritional requirements drive the decision to dine at McDonald’s significantly in marketing and branding to influence consumer perceptions and preferences. The company’s success is tied to its ability to create a positive brand image and attract customers through advertising, promotions, and product innovation.
5. Nike (NYSE: NKE)
Nike is a global leader in designing, marketing and selling athletic footwear, apparel, equipment, and accessories. Wearing a pair of Nikes or Air Jordans is a fashion statement. Nike sponsors many of our favorite athletes and celebrities; we want to look just like them. The company’s brand image is essential for its sales. However, there are many cheaper alternatives that many consumers turn to when funds are low.
6. Lowe’s Companies (NYSE: LOW)
Lowe’s customers engage in home improvement and renovation projects, similar to Home Depot’s. Our desire to upgrade our home rarely comes during a recession. Instead, we spend our hard-earned funds on these projects when we have a positive outlook on the economy.
7. Starbucks (NASDAQ: SBUX)
Starbucks is a global coffeehouse chain that offers specialty coffee, tea, and various food items. While coffee and food are essential, shopping at Starbucks can be easily replaced with a cheaper, maybe more nutritious, and tastier option. Starbucks positions itself as a premium coffee brand, and its pricing reflects this. The company emphasizes creating a unique and enjoyable customer experience, contributing to the discretionary nature of its offerings. Consumers often choose Starbucks for its brand and the social aspects of visiting a coffeehouse, making it a luxury food item.
8. The TJX Companies (NYSE: TJX)
TJX is a major off-price retailer that operates various brands, including T.J. Maxx, Marshalls, HomeGoods, and others. The company primarily offers discounted and value-oriented products across various categories, such as apparel, home goods, and accessories. TJX may be a cheaper alternative, but its fashion products remain non-essential. Seasonal trends and changing consumer preferences influence the company’s inventory. TJX adapts its merchandise to reflect current fashion trends and consumer demands.
9. Booking Holdings (NASDAQ: BKNG)
Booking is an online travel company providing services related to travel and hospitality with its affiliates (Booking, Priceline, Agoda, Kayak, and others). Hotel reservations, flights, car rentals, and vacation packages are non-essential. Very few can afford a vacation home when funds are short. As a long-time traveler, I’ve mainly used Booking for rooms and car rentals, and I’ve had very few complaints about the company’s services. It’s no wonder this has been one of the hottest stocks.
10. Airbnb (NASDAQ: ABNB)
Airbnb was once the most popular short and long-term stay-booking website. However, the company has been adding various service charges, which has caused its stock price to stagnate. Many are finding alternative ways to book their ideal vacation getaway, causing Airbnb’s popularity to fall. While Booking’s stock kept rising during COVID, Airbnb struggled and never quite recovered despite an increasing number of vacationers around the globe.
Consumer Discretionary ETF List
| Symbol | Name | Industry |
|---|---|---|
| XLY | Consumer Discretionary Select Sector SPDR Fund | Broad Consumer Discretionary |
| XLC | Communication Services Select Sector SPDR Fund | Media |
| VCR | Vanguard Consumer Discretionary ETF | Broad Consumer Discretionary |
| FDIS | Fidelity MSCI Consumer Discretionary Index ETF | Broad Consumer Discretionary |
| IYC | iShares U.S. Consumer Discretionary ETF | Consumer Services |
| RCD | Invesco S&P 500® Equal Weight Consumer Discretionary ETF | Broad Consumer Discretionary |
| PEJ | Invesco Dynamic Leisure & Entertainment ETF | Broad Consumer Discretionary |
| FXD | First Trust Consumer Discretionary AlphaDEX Fund | Broad Consumer Discretionary |
| CHIQ | Global X MSCI China Consumer Discretionary ETF | Broad Consumer Discretionary |
| XRT | SPDR S&P Retail ETF | Retail |
| RXI | iShares Global Consumer Discretionary ETF | Broad Consumer Discretionary |
| ESPO | VanEck Video Gaming and eSports ETF | Gaming |
| IBUY | Amplify Online Retail ETF | Retail |
| HERO | Global X Video Games & Esports ETF | Gaming |
| RTH | VanEck Retail ETF | Retail |
| TSLL | Direxion Daily TSLA Bull 1.5X Shares ETF | Automotive |
| TSLQ | AXS TSLA Bear Daily ETF | Automotive |
| BETZ | Roundhill Sports Betting & iGaming ETF | Gaming |
| ONLN | ProShares Online Retail ETF | Retail |
| BJK | VanEck Gaming ETF | Gaming |
| INCO | Columbia India Consumer ETF | Broad Consumer Discretionary |
| CRUZ | Defiance Hotel Airline and Cruise ETF | Broad Consumer Discretionary |
| TSLS | Direxion Daily TSLA Bear 1X Shares | Automotive |
| EBIZ | Global X E-commerce ETF | Broad Consumer Discretionary |
| RETL | Direxion Daily Retail Bull 3X Shares | Retail |
| FDRV | Fidelity Electric Vehicles and Future Transportation ETF | Automotive |
| CARZ | First Trust S-Network Future Vehicles & Technology ETF | Automotive |
| PBS | Invesco Dynamic Media ETF | Media |
| NERD | Roundhill Video Games ETF | Gaming |
| PEZ | Invesco DWA Consumer Cyclicals Momentum ETF | Broad Consumer Discretionary |
| PSCD | Invesco S&P SmallCap Consumer Discretionary ETF | Broad Consumer Discretionary |
| BFIT | Global X Health & Wellness ETF | Broad Consumer Discretionary |
| OOTO | Direxion Daily Travel & Vacation Bull 2X Shares | Leisure & Entertainment |
| WANT | Direxion Daily Consumer Discretionary Bull 3X Shares | Broad Consumer Discretionary |
| EMTY | ProShares Decline of the Retail Store ETF | Retail |
| IEDI | iShares U.S. Consumer Focused ETF | Broad Consumer Discretionary |
| AMZU | Direxion Daily AMZN Bull 1.5X Shares ETF | Retail |
| UCC | ProShares Ultra Consumer Services | Consumer Services |
| BAD | B.A.D. ETF | Broad Consumer Discretionary |
| VICE | AdvisorShares Vice ETF | Broad Consumer Discretionary |
| BUYZ | Franklin Disruptive Commerce ETF | Broad Consumer Discretionary |
| JRNY | ALPS Global Travel Beneficiaries ETF | Broad Consumer Discretionary |
| AMZD | Direxion Daily AMZN Bear 1X Shares ETF | Retail |
| HLGE | Hartford Longevity Economy ETF | Broad Consumer Discretionary |
| KBUY | KraneShares CICC China Consumer Leaders Index ETF | Broad Consumer Discretionary |
| GGLS | Direxion Daily GOOGL Bear 1X Shares ETF | Media |
| GGLL | Direxion Daily GOOGL Bull 1.5X Shares ETF | Media |
| SCC | ProShares UltraShort Consumer Services | Consumer Services |
| ISHP | First Trust S-Network E-Commerce ETF | Retail |
| BEDZ | AdvisorShares Hotel ETF | Broad Consumer Discretionary |
| TSLI | GraniteShares 1x Short TSLA Daily ETF | Automotive |
| FLYU | MicroSectors Travel 3x Leveraged ETN | Leisure & Entertainment |
| SUBS | Fount Subscription Economy ETF | Broad Consumer Discretionary |
| VCAR | Simplify Volt RoboCar Disruption and Tech ETF | Automotive |
| FLYD | MicroSectors Travel -3x Inverse Leveraged ETN | Leisure & Entertainment |
| TSLH | Innovator Hedged TSLA Strategy ETF | Automotive |
| EVAV | Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares | Automotive |
| IBET | iBET Sports Betting and Gaming ETF | Gaming |
| ZGEN | Generation Z ETF Generation Z Fund | Broad Consumer Discretionary |
| NKEQ | AXS 2X NKE Bear Daily ETF | Broad Consumer Discretionary |
| NKEL | AXS 2X NKE Bull Daily ETF | Broad Consumer Discretionary |
| OND | ProShares On-Demand ETF | Leisure & Entertainment |
| TSL | GraniteShares 1.25x Long Tesla Daily ETF GraniteShares 1.25x Long TSLA Daily ETF | Automotive |
Largest Consumer Discretionary ETFs
Consumer discretionary ETFs aim to provide investors with diversification by holding a basket of stocks across various sub-sectors within consumer discretionary. By investing in an ETF, investors gain exposure to various companies rather than putting all their money into one or a few individual stocks.
If you want a mix of all the stocks named above, among 51 others, XLY is for you. However, 40% of the fund is invested in Amazon and Tesla. XLY has a low expense ratio (0.10%) and consistent returns since its inception in 1998.
VCR’s fund also has Amazon and Tesla taking almost 40% of the funds. However, over 300 more companies are included, along with a quarterly dividend.
FDIS also has Amazon and Tesla representing about 36% of the fund, and the remaining 297 companies weigh much less. One small difference is a smaller expense ratio (0.08%).
IYC is composed of fewer companies (176), a higher expense ratio (0.40%), and less weight for Amazon and Tesla (21% combined). Costco and Netflix also have a little more diversity in the top 10. Regardless, its performance has aligned with the other ETFs mentioned so far.
With RSPD, the top 10 holdings represent a mere 20% of the entire fund, and none of the companies mentioned above are found. Instead, you can find Bath & Body Works, Carmax, Ford, Whirlpool, The funds are much more diverse with an equal weight, but the expense ratio is 0.40%.
ETFs List Continued
FXD’s holdings are also very different from the list we provided, not a single stock’s weight surpasses 2%. The top holdings include Macy’s, DraftKings, Uber, and Under Armour. Investors can also benefit from a $0.16 quarterly dividend. However, the expense ratio is slightly higher than others at 0.61%.
CHIQ isn’t the best-performing ETF on this list because it focuses on consumer discretionary Chinese stocks. China’s economy was once a powerhouse, but since COVID, it has greatly slowed down. This fund has 79 holdings, including PDD Holdings, Alibaba, JD, Yum China, and others. If you believe China’s economy is due for a rebound, this ETF might be for you.
XRT comprises 76 retail (apparel, automobile, food, and specialty) consumer discretionary stocks. The fund’s top holdings include Macy’s, Abercrombie + Fitch, Carvana, Nordstrom, Kohl’s, and other retailers. Overall, it has performed similarly to other ETFs on this list.
Final Thoughts: Consumer Discretionary Stocks List
The consumer discretionary stocks list encompasses various industries, including retail, apparel, automotive, travel, and entertainment. The performance of these stocks is closely tied to economic conditions, consumer confidence, and trends in discretionary spending. Companies within this sector often rely on branding, innovation, and marketing strategies to capture consumer attention and drive sales. The most popular consumer discretionary ETFs are heavily invested in Amazon and Tesla, but others prefer more diverse holdings. Which consumer discretionary stocks and industries are poised for success in the future?
