ETF Sector: Consumer Discretionary A consumer discretionary ETF is an exchange traded fund that invests in companies that produce consumer goods and services. These companies are typically sensitive to economic conditions, as their products are often seen as discretionary items. As such, consumer discretionary ETFs tend to be more volatile than other types of ETFs. However, they can also offer higher returns, making them an attractive option for investors who are willing to take on a bit more risk. Some of the largest consumer discretionary ETFs include the SPDR S&P Consumer Discretionary ETF and the iShares US Consumer Goods ETF.