ETFS That Invest in Consumer Discretionary Goods Are Feeling the Strain of Nike Stock Double-Digit Fall.

Nike Stock


On Friday, exchange-traded funds with heavy weightings toward the footwear and apparel giant Nike (NYSE:NKE) have ticked lower as the Nike stock has dropped double digits and the company’s margins have thinned out due to excess inventory. Nike’s margins have thinned out due to the company’s excess inventory.

There are 269 exchange-traded funds that own Nike (NYSE:NKE). Still, the widely used Consumer Discretionary Select Sector SPDR ETF has one of the most substantial weightings in the stock (NYSEARCA:XLY).

XLY has a position in the company situated in Beaverton, Oregon, equivalent to 3.86% of the total weight. NKE is trading at a loss of 11.6% in today’s session, while XLY is trading at a loss of 0.8%.

XLY is the most valuable consumer discretionary exchange-traded fund (ETF) on Wall Street since it has $14.72 billion in assets under management. This is a $10 billion advantage over the Vanguard Consumer Discretionary ETF (VCR), which is in second place and has $4.31 billion in assets.

According to XLY, which has an expense ratio of 0.10%, Nike stock is now ranked as the fund’s sixth biggest holding.

Price movement since the beginning of the year: Nike stock is down 49.0%, while XLY is down 31.4%.

(VCR), (IEDI), (FDIS), and (LUXE) are some further examples of consumer discretionary ETFs that are now trading in the negative on Friday (WANT).

Nike’s stock price is falling as investors evaluate the company’s shrinking profit margins and the stock’s efforts to reduce its surplus inventory. Despite Nike’s belief that the margin pressure would only be temporary, analysts are lowering their projections for the company’s earnings per share for the current fiscal year.

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Consumer discretionary exchange-traded funds are feeling the strain as a result of Nike stock double-digit drop.

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