VDC Consumer Staples ETF: Good Diversifier, Buy On Weakness
Sector and thematic ETFs (exchange-traded funds) can be a great way for passive investors to spice up their portfolios and add more of a unique touch.
Looking for broad exposure to the Consumer Staples - Broad segment of the equity market? You should consider the Vanguard Consumer Staples ETF (VDC), a passively managed exchange traded fund launched on 01/26/2004.
No one knows when or why the next stock market sell-off will occur. But we do know that market downturns are part of the price of admission for unlocking the long-term gains of the stock market.
I provide a top-down analysis of the consumer staples sector, focusing on fundamental and momentum metrics. The household products, beverage, and food industries are undervalued, while tobacco has poor value and quality scores. Fast facts on VDC, an alternative to XLP for long-term investors.
The Vanguard Consumer Staples ETF (VDC) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Consumer Staples - Broad segment of the equity market.
Vanguard offers 86 exchange-traded funds (ETFs). With such a large lineup, it might seem there would be a Vanguard ETF for any market condition.
Stocks in these "safe" sectors are selling off as investors gravitate toward growth.
Falling interest rates create an opportunity for one group of stocks.
VDC's valuation is fully priced with a P/E above 21x and a PEG ratio of 2.95, leading to a hold rating. The ETF offers low fees, high liquidity, and a 1.3% higher yield than the S&P 500, attracting long-term and income investors. VDC's concentrated portfolio in large-cap value stocks like Costco and Walmart requires close monitoring of these key holdings.
The Vanguard Consumer Staples ETF (VDC) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Consumer Staples - Broad segment of the equity market.
For investors seeking momentum, Vanguard Consumer Staples ETF VDC is probably on the radar. The fund just hit a 52-week high and is up 26.7% from its 52-week low price of $172.75/share.