Image Source: PixabayAmericans are feeling optimistic about the economy given stabilizing inflation and shifting election sentiments. This is especially true as consumer sentiment rose in early August for the first time in five months. Rising consumer sentiment bodes well for household spending in the coming months. It is expected to have a positive impact on the consumer discretionary sector, which attracts a major portion of consumer spending. Investors can tap the encouraging trend in the basket form through consumer discretionary ETFs like Consumer Discretionary Select Sector SPDR Fund (XLY – Free Report), Vanguard Consumer Discretionary ETF (VCR – Free Report), Fidelity MSCI Consumer Discretionary Index ETF (FDIS – Free Report), First Trust Consumer Discretionary AlphaDEX Fund (FXD – Free Report) and iShares U.S. Consumer Services ETF (IYC – Free Report). These funds have a Zacks ETF Rank #3 (Hold).The latest University of Michigan consumer sentiment index climbed from 66.4 in July to 67.8, marking the highest reading of consumer sentiment since June. This has sparked strong optimism surrounding the economy and the stock market, which eased concerns about a cooling labor market in early August.According to the survey, inflation expectations remained stable at 2.9% over the next year and 3% over the next five to 10 years. Consumers’ expectations of inflation over the next year remain at their lowest level since December 2020.Most of the rise in confidence came from presidential election developments. Sentiment for Democrats rose 6% as Vice President Kamala Harris gained ground in public polling while sentiment for Republicans fell 5%. The survey showed that 41% of consumers believe Harris is the better candidate for the economy, while 38% said Trump is better.Consumer Discretionary Select Sector SPDR FundConsumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space and tracks the Consumer Discretionary Select Sector Index. It holds 52 securities in its basket, with key holdings in specialty retail, hotels, restaurants and leisure, broadline retail, and automobiles with a double-digit allocation each.Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $18.6 billion and an average daily volume of around 3 million shares. It charges 0.09% in expense ratio.Vanguard Consumer Discretionary ETFVanguard Consumer Discretionary ETF follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 302 stocks in its basket. In terms of industrial exposure, broadline retail, automobile manufacturers and restaurants occupy the top three spots. Vanguard Consumer Discretionary ETF is the low-cost choice in the space, charging investors only 10 bps in annual fees while volume is good at nearly 61,000 shares a day. The fund has managed $5.4 billion in its asset base so far.Fidelity MSCI Consumer Discretionary Index ETFFidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 274 stocks in its basket. It has key holdings in broadline retail, specialty retail, hotels, restaurants and leisure, and automobiles.Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.6 billion in its asset base while trading in a good volume of around 137,000 shares a day on average. It charges 8 bps in annual fees from investors.First Trust Consumer Discretionary AlphaDEX FundFirst Trust Consumer Discretionary AlphaDEX Fund follows an AlphaDEX methodology and ranks stocks in the space by various growth and value factors, eliminating the bottom-ranked 25% of the stocks. This approach results in a basket of 120 stocks with retailers, travel and leisure, media    and personal goods taking double-digit exposure each. First Trust Consumer Discretionary AlphaDEX has an AUM of $1.5 billion and trades in a volume of 47,000 shares per day on average. It charges a higher 61 bps in annual fees.iShares U.S. Consumer Services ETFiShares U.S. Consumer Discretionary ETF offers exposure to U.S. companies that distribute food, drugs, general retail items and media by tracking the Russell 1000 Consumer Disc 40 Act 15/22.5 Daily Capped Index. It holds 176 stocks in its basket, with key holdings in consumer discretionary, consumer services, media & entertainment, consumer staples distribution & retail, and autos & components.iShares U.S. Consumer Discretionary ETF has amassed $1 billion in its asset base and trades in a moderate volume of 123,000 shares a day on average. It charges 40 bps in annual fees from investors.More By This Author:5 Technology ETFs At The Forefront Of The August Rebound ETFs To Gain On Walmart’s Robust Q2 Earnings5 Quality ETFs To Bet On Amid Volatile Markets