Consumer Discretionary SPDR (ETF) (NYSEARCA:XLY) Shows Increased ETF Inflow, XLY: S&P 500 Ratio Free-Falls


Dallas, Texas 04/02/2014 (FINANCIALSTRENDS) – According to the ETF channel, the exchange traded funds of Consumer Discretionary SPDR (ETF) (NYSEARCA:XLY)stood out with a 2.3% increase in week over week inflow, amounting to almost $128.6 million. On the other hand, the ratio of XLY to S&P 500 showed a marked decrease, making it a cause for concern. The EPS guidance was declared as lesser than the Wall Street expectation, but the market reacted favorably for this move.

Improved ETF inflow for Consumer Discretionary SPDR (ETF) (NYSEARCA:XLY)

The SSgA Funds Management, Inc. helmed Consumer Discretionary SPDR (ETF)(NYSEARCA:XLY) showed an increase of around 2.3% in outstanding units, moving from 85,353,252 to 87,353,252 units. Among the group, the top companies which showed a marked increase were, Inc.(NASDAQ:AMZN), The Walt Disney Company(NYSE:DIS) as well as Comcast Corporation(NASDAQ:CMCSA); each increasing by more than 1% in the week. The 52 week low for the ETF was $51.95 while the year’s high was at $67.85. The current price stands at $65.58.

Dropping XLY: S&P 500 ratio cause for concern

The first quarter showed that the ETFs focused on consumers have performed below the expected levels. This is especially noticeable in the price drop of the XLY: S&P 500 ratio. This is because the higher commodity prices are not able to be transferred to consumers, making Consumer Discretionary SPDR (ETF)(NYSEARCA:XLY) take a hit in its prospects.

Lesser than expected EPS Guidance, but spurs price increase

The EPS guidance for the quarter for corporate America was reported as negative for both Industrial Select Sector SPDR (XLI) as well as for Consumer Discretionary SPDR (ETF)(NYSEARCA:XLY). Although these pre-announcements are below the estimates, the silver lining everyone is looking at is that they are trying to under promise earlier so that the expectations could be managed when the actual reports come through. So far, the market seems to favor the strategy, with Consumer Discretionary SPDR (ETF)(NYSEARCA:XLY) showing an increase of 1.33% on April 1st.