Is Tiffany & Co (TIF) a Good Buy?

The less obvious and perhaps the safest play is one of the ETF’s that track consumer discretionary spending, such as the Consumer Discretionary Select Sector SPDR Fund. This is a great way to gain exposure to an increase in consumer spending without relying too much on any one company. The fund’s top holdings include Walt Disney, Home Depot, Comcast, McDonalds, Amazon.com, and others. The fund is up about 21% year-to-date and currently pays out 1.36% annually, with a very low expense ratio.

Conclusion

As far as individual names in the sector go, it’s hard to find a brand with the appeal, history, and growth potential of Tiffany & Co. (NYSE:TIF). Having said that, I’m tempted to say that the best long-term investment in the sector is with an ETF like the one mentioned. Retail stocks tend to be relatively volatile, and something like a less-than-stellar holiday season can derail the performance of any one company. Just look at the hit Coach took this past winter! With this ETF, you avoid those types of swings, and will be sure to benefit if this economic recovery is indeed real and sustainable.

Matthew Frankel has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Looking For The Best Play On Luxury Spending originally appeared on Fool.com.

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