VDC ETF

The Vanguard Consumer Staples ETF (VDC) started on January 26, 2004, and is a passively managed fund that aims to provide wide access to the Consumer Staples - Broad section of the stock market.

Vanguard has 86 exchange-traded funds (ETFs) available. With this wide range, it appears that there is a Vanguard ETF suitable for any market situation.

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.

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.

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.

Consumer Staples stocks and related ETFs may not be the best choice for defensive options in the event of a recession.