Tesla’s 18.97% Weight in XLY Explains Why It Beat VCR by 9 Points in Five Years

Quick Read

• Vanguard Consumer Discretionary ETF (VCR) holds roughly 300 stocks and dilutes Tesla exposure across homebuilders and mid-caps, while Consumer Discretionary Select Sector SPDR Fund (XLY) concentrates 18.97% in Tesla and 23.53% in Amazon, creating a 42.50% combined weighting in two names. Over five years XLY returned 44.8% versus VCR’s 35.8%, but over ten years VCR’s broader exposure delivered 261.29% against XLY’s 237.79%.

• Tesla’s 26.35% one-month surge and 33.29% annual gain amplify XLY’s outperformance through its concentrated 18.97% weighting, while rising motor vehicle spending from $713.3 billion in January to $780.9 billion in March benefits both funds disproportionately through their mega-cap holdings.

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