Share-split context: A forward split was recorded on Dec 5, 2025 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

ETF Education Report: STATE STREET(R) CONSUMER DISCRETIONARY SELECT SECTOR SPDR(R) ETF (XLY)

What this ETF is trying to do

This ETF, known by its ticker symbol XLY, focuses on the "consumer discretionary" sector. This means it invests in companies that sell goods and services people choose to buy, such as cars, travel, and luxury items. The fund holds a variety of companies, including Amazon.com Inc (23.39%) and Tesla Inc (17.67%). Because the holdings can change over time, it is important to check the most recent data.

What the numbers show

When looking at an ETF, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price moves. Total return includes both the price movement and any cash distributions paid out to investors.

• Year-to-Date (YTD): The price return is approximately -6.74%, while the total return is approximately -6.17%.

• One-Year: The price return is approximately -5.51%, while the total return is approximately -4.74%.

• Three-Year: The price return is approximately 38.67%, while the total return is approximately 42.13%.

This ETF has a history of "forward splits." The most recent event was on December 5, 2025. In a forward split, each old share becomes multiple new shares. This causes the price per share to fall proportionally, but it does not change how much of the company you own.

Income and distribution explanation

Some investors look for ETFs that pay out cash, called distributions. This ETF has a distribution yield of approximately 0.84%. It usually pays these out quarterly, and it has made four payments in the last 12 months. While distributions provide cash income, they are not the same as total return.

NAV erosion explanation

"NAV erosion" is a term used to describe a decline in the Net Asset Value (the actual value of the fund's assets). While a falling share price can sometimes be related to this, they are not the same thing. This ETF has an erosion-risk score of 75, which is labeled as "mild price erosion." However, there is no severe erosion-risk flag for this fund.

Pros

• The ETF has shown strong total returns over a three-year period (approximately 42.13%).

• It provides regular cash distributions to investors.

Cons

• The ETF has experienced a share-price decline over the last year and year-to-date.

• The erosion-risk score indicates "mild price erosion."

Beginner takeaway

When studying XLY, remember that a high distribution yield does not guarantee you will make money; you must also look at the price return. Additionally, always distinguish between the movement of the share price and the total return, which includes the cash paid out to you.

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*Disclaimer: This report is for educational purposes only and does not constitute financial advice. I am not recommending whether to buy, sell, or hold this ETF.*