Should You Invest in the Vanguard Consumer Staples ETF (VDC)?

The Vanguard Consumer Staples ETF (VDC) was launched on January 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.An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 16, placing it in bottom 0%.Index DetailsThe fund is sponsored by Vanguard. It has amassed assets over $7.31 billion, making it one of the largest ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. VDC seeks to match the performance of the MSCI US Investable Market Consumer Staples 25/50 Index before fees and expenses.The MSCI US Investable Market Consumer Staples 25/50 Index measures the investment return of stocks in the consumer staples sector.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.09%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 2.23%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Consumer Staples sector -- about 99.9% of the portfolio.Looking at individual holdings, Walmart Inc (WMT) accounts for about 12.89% of total assets, followed by Costco Wholesale Corp (COST) and Procter & Gamble Co/the (PG).The top 10 holdings account for about 44.75% of total assets under management.Performance and RiskSo far this year, VDC has gained about 2.37%, and it's up approximately 1.67% in the last one year (as of 10/06/2025). During this past 52-week period, the fund has traded between $204.89 and $226.16.The ETF has a beta of 0.56 and standard deviation of 11.93% for the trailing three-year period, making it a medium risk choice in the space. With about 110 holdings, it effectively diversifies company-specific risk.AlternativesVanguard Consumer Staples ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VDC is a sufficient option for those seeking exposure to the Consumer Staples ETFs area of the market. Investors might also want to consider some other ETF options in the space.Fidelity MSCI Consumer Staples Index ETF (FSTA) tracks MSCI USA IMI Consumer Staples Index and the Consumer Staples Select Sector SPDR ETF (XLP) tracks Consumer Staples Select Sector Index. Fidelity MSCI Consumer Staples Index ETF has $1.29 billion in assets, Consumer Staples Select Sector SPDR ETF has $16.01 billion. FSTA has an expense ratio of 0.08%, and XLP charges 0.08%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard Consumer Staples ETF (VDC): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks