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.
Designed to provide broad exposure to the Consumer Staples - Broad segment of the equity market, the Vanguard Consumer Staples ETF (VDC) is a passively managed exchange traded fund launched on 01/26/2004.
VDC underperformed the broader market in the past 2 years. Consumer staples sector's growth prospect is diminishing. VDC has an expensive valuation and lower growth outlook compared to the S&P 500 index, making it unattractive for investors.
The Vanguard Value ETF and Vanguard High Dividend Yield ETF focus on income and value stocks. The Vanguard Dividend Appreciation ETF targets companies that are growing earnings even if they have low yields.
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.