A sound investment process and strong management team underpin Vanguard Consumer Staples ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy's investment process inspires confidence and earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it is currently, although not consistently, underweight in liquidity exposure and volatility exposure compared with category peers. Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And low volatility exposure is rooted in stocks that have a lower standard deviation of returns. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm a High Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Procter & Gamble

Costco

Walmart

Coca-Cola

PepsiCo

Philip Morris

Mondelez

Target

Altria

Colgate-Palmolive

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Vanguard Consumer Staples Fund earns a High Process Pillar rating. This fund tracks an index, which increases its process rating. Historical data, such as Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. 

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the performance of the MSCI US Investable Market Index/Consumer Staples 25/50.  The fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index/Consumer Staples 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the consumer staples sector, as classified under the GICS. The Advisor attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the index, and in order to hold each stock in approximately the same proportion as its weighting in the index. The fund is non-diversified. 

 The portfolio has allocations in its top two sectors, consumer defensive and real estate, that are similar to the category. The sectors with low exposure compared to category peers are healthcare and consumer cyclical; however, the allocations are similar to the category. The portfolio is positioned across 107 holdings and is quite concentrated. In particular, 60.9% of the strategy's assets are housed within the top 10 holdings, versus the category’s 53.8% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 9% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

High

Process

Vanguard Consumer Staples Fund's strong equity team drives the strategy's Above Average People Pillar rating. There are two managers listed on the fund: Nick Birkett, Awais Khan. Overall, management experience is lacking on the team, with only an average of four years spent in the industry. Together, they manage a total of three strategies, with solid long-term prospects. The strategies average a Gold asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

The Vanguard Group retains a High Parent rating. 

Mutual ownership, low costs, and a direct-to-investor playbook have helped spur Vanguard's leadership within the United States. Client service missteps notwithstanding, Vanguard over the past decade has grown its market share of U.S. open-end and exchange-traded fund assets at about a 5% annualized clip. At that rate, Vanguard's portion of the U.S. industry will cross 50% around 2035.

True, some competitors can now match or even undercut Vanguard on fees for broad market exposure. But Vanguard's burgeoning advice business could help it keep or even extend that lead. Through Digital Advisor and Personal Advisor Services, Vanguard has built an increasingly compelling ecosystem of advice for investors with simple to complex needs.

Vanguard is also using its advice business to expand overseas, but that's a work in progress. Of Vanguard's USD 7.6 trillion in global assets under management in March 2023, non-U.S. investors owned less than 10%, a figure that has changed little in recent years. Strategic shifts in China and other markets account for the slow pace, including returning money to institutions that had been layering on fees. Vanguard hopes to recoup that money and more by focusing on individual investors and the advisors who serve them. Provided Vanguard sticks to its playbook, its advantages should translate into success abroad, too.

Parent

Vanguard Consumer Staples ETF

VDC tracks a market-cap-weighted index of stocks in the Consumer Staples sector of the US market.

The fund tracks a market-cap-weighted index of stocks in the consumer staples sector of the US market.

iShares U.S. Consumer Goods ETF

iShares Global Consumer Staples ETF

Invesco S&P 500 Equal Weight Consumer Staples ETF

Consumer Staples Select Sector SPDR Fund

With the recent inflation data, ebbing rate cut probability, escalating geopolitical tensions and rising U.S. debt levels, the appeal for investing in consumer staple funds increases.

Shield Your Wealth With Consumer Staple ETFs

iShares S&P 500 Value ETF

iShares Russell 1000 Value ETF

American Century U.S. Quality Growth ETF

iShares MSCI USA Quality Factor ETF

Schwab US Dividend Equity ETF

Invesco S&P 500 Quality ETF

Vanguard Dividend Appreciation ETF

Vanguard Value ETF

Vanguard High Dividend Yield ETF

Contrary to the broad market view, Vanguard forecasts that the Federal Reserve may maintain steady rates this year, ruling out any anticipated interest rate cuts. Also, concerns about the economy facing a risk of an impending pullback create some uncertainty.

Predictions of a Steady Fed & Pullback? ETFs Capturing Attention

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.

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

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

VDC: Defensive, But Not Totally Recession-Proof

Fidelity MSCI Consumer Staples ETF

iShares Evolved U.S. Discretionary Spending ETF

VanEck Vectors Retail ETF

Vizio Holding Corp

Walmart (WMT) spread strong optimism by reporting robust fourth-quarter fiscal 2024 results, providing a big boost to its annual dividend and unveiling the $2.3 billion takeover of smart TV maker Vizio (VZIO).

Walmart Soars on Earnings, Dividend & Vizio Deal: ETFs to Buy

Soft drink bellwether Coca-Cola Company (KO) reported earnings yesterday and PepsiCo (PEP) reported last week. Both giants came up with upbeat earnings.

Coke-Pepsi Earnings Put These ETFs in Focus

iShares U.S. Healthcare ETF

Vanguard Health Care ETF

Vanguard Utilities ETF

Utilities Select Sector SPDR Fund

Health Care Select Sector SPDR Fund

The possibility of a mild recession, rising fears of an economic slowdown and significant debt levels are some possible headwinds that could dampen the prospects of the economy in 2024. Look into funds to benefit from such a situation.

ETFs to Secure Your Portfolio Amid Potential Economic Fluctuations

First Trust S-Network Streaming and Gaming ETF

VanEck Vectors Digital Transformation ETF

Global X Funds - Global X E-commerce ETF

Amplify Online Retail ETF

First Trust S-Network E-Commerce ETF

ProShares On-Demand ETF

Proshares Online Retail ETF

Valkyrie Bitcoin Miners ETF

Communication Services Select Sector SPDR Fund

2023 was a year of surprises. These are five key sector themes illustrated in charts that dominated the ETF world this past year.

2023 in Charts: 5 ETF Sector Stories

The consumer staples sector is overvalued by about 6% relative to 11-year averages. Staple/food retail has good value and quality scores. VDC fast facts.

VDC: Consumer Staples Dashboard For December

Amplify Lithium & Battery Technology ETF

First Trust NASDAQ Global Auto Index Fund

Defiance Hotel Airline and Cruise ETF

Goldman Sachs Future Consumer Equity ETF

US Global Jets ETF

KraneShares Electric Vehicles & Future Mobility Index ETF

Kraneshares Global Luxury Index ETF

Tema Luxury ETF

Roundhill S&P Global Luxury Etf

Innovator Hedged TSLA ETF

United States Gasoline Fund LP

United States Oil Fund LP

Vanguard Consumer Discretionary ETF

Consumer Discretionary Select Sector SPDR Fund

SPDR S&P Retail ETF

Good morning, VettaFi Voices! Last Friday, the holiday shopping season kicked off in earnest (while I hunkered down in my house eating turkey sandwiches and waited for the initial frenzy to pass).

VettaFi Voices On: The 2023 Holiday Retail Season

Recent data point to a record shopping season for Shopify (SHOP), which saw Black Friday sales grow 22% y/y. Additional reports from Adobe Analytics show a strong $9.8 billion Black Friday season.

Staples Counting on Discounts for the Remainder of 2023

Citigroup

Dominion Energy

Duke Energy

Alphabet

Johnson & Johnson

Microsoft

UnitedHealth Group

Technology Select Sector SPDR Fund

Bond yields are showing signs that they have peaked. If they keep dropping, it would make a host of stocks look attractive including Duke Energy, Coca-Cola, Procter & Gamble, and Johnson & Johnson.

The Bond Sell-Off Might Be Over. Buy These Stocks to Win.

Nasdaq F&B Shs Nasdaq Food & Beverage

Beverage maker Coca-Cola (KO) is scheduled to report third-quarter 2023 results on Oct 24 before market open.

Coca-Cola Earnings Preview: ETFs in Focus

PepsiCo (PEP) reported robust third-quarter 2023 results, wherein revenues and earnings surpassed the Zacks Consensus Estimate.

PepsiCo Earnings Beats Overall, Lifts View: ETFs to Benefit

First Trust Consumer Discretionary AlphaDEX Fund

iShares U.S. Home Construction ETF

SPDR MSCI USA StrategicFactors ETF

American Century STOXX U.S. Quality Value ETF

SPDR S&P Homebuilders ETF

Invesco S&P SmallCap Quality ETF

Surpassing the $1.7 trillion mark, student debt has emerged as one of the most significant facets of consumer borrowing in the past decade. With about 44 million debt-burdened consumers, look into which ETF categories are affected and which types investors can capitalize from.

ETFs That Could Be Impacted by the Student Loan Payment Restart

The Consumer Staples sector has significantly underperformed the S&P 500 during 2023. This, combined with the possibility of recession, may lead to compelling value in this sector. In this article, I begin by offering an overview of the Consumer Staples sector in general, both in terms of advantages as well as drawbacks. From there, I dive into two quality ETFs in the space. In the end, I pick what I consider to be the winner between the two.

XLP Vs. VDC: 2 Compelling Choices For SWAN Investors

The problem isn't the outlook for earnings at utilities and makers of consumer staples. Higher yields on Treasury debt are hurting the shares.

'Defensive' Stocks Are Getting Crushed in a Falling Market. Why It's Time to Buy.

America's largest retailer, Walmart (WMT), is garnering Wall Street's attention with its impressive stock performance.

Walmart Hovers Around an All-Time High: Can ETFs Soar Higher?

Amplify Travel Tech ETF

Fidelity MSCI Consumer Discretionary ETF

First Trust Consumer Staples AlphaDEX Fund

iShares U.S. Consumer Services ETF

ALPS Global Travel Beneficiaries ETF

Direxion Daily Travel & Vacation Bull 2X Shares

Invesco DWA Consumer Cyclicals Momentum ETF

Invesco S&P SmallCap Consumer Staples ETF

 Invesco S&P SmallCap Consumer Discretionary ETF

Invesco DWA Consumer Staples Momentum ETF

Invesco S&P 500 Equal Weight Consumer Discretionary ETF

iShares Global Consumer Discretionary ETF

Some consumer discretionary stocks have performed better than others. Luxury, homebuilding, and travel have been a bright spots.

Outlook For Consumer Discretionary Stocks Amid Shifting Spending Patterns

Alerian MLP ETF

Pacer US Cash Cows 100 ETF

Alerian Energy Infrastructure ETF

WisdomTree U.S. Earnings 500 Fund

iShares S&P 500 Growth ETF

Invesco QQQ

SPDR S&P 500 ETF Trust

VictoryShares Free Cash Flow ETF

Vanguard Telecommunication Services ETF

Hi VettaFi Voices, we are heading toward the last week of the Q2 earnings season. Now seems like a good time to assess how things have gone so far and what we can expect from next week.

VettaFi Voices On: The Coming End of Earnings Season

Walmart (WMT) reported robust second-quarter fiscal 2024 results, wherein it surpassed both earnings and revenue estimates and raised its outlook for the full year.

ETFs to Bet on as Walmart Beats Q2 Earnings Estimates

Walmart has been hitting record highs ahead of its earnings release. It has a strong chance of beating estimates this quarter.

Walmart Likely to Beat Q2 Earnings Estimates: ETFs in Focus

Both Coca-Cola and PepsiCo have beaten top-and-bottom lines in the second quarter. Guidance also remains upbeat.

Coke, PepsiCo Earnings Should Drive Consumer Staples ETFs

Bread Financial Holdings Inc

Starbucks

If you've ever tried choosing winners, you know it isn't easy. Timing, though, has a lot to do with it.

It's a Stockpicker's Market. What That Means and What to Buy.

Qraft AI-Enhanced US Large Cap Momentum ETF

Walmart surpassed both earnings and revenue estimates and raised its outlook for the full year.

Walmart Beats on Q1 Earnings, Lifts View: ETFs in Focus

News for Vanguard Consumer Staples ETF ETF (VDC)