ETF Spotlight: Vanguard Consumer Staples (VDC)

ETF Spotlight on Vanguard Consumer Staples (NYSEArca: VDC), part of a weekly series.

Assets: $525 million

Holdings: Some of the most recognizable consumer staples brands in America, including Procter & Gamble (NYSE: PG), Coca Cola (NYSE: KO), CVS (NYSE: CVS) and Kraft (NYSE: KFT)

Objective

VDC tracks the performance of the MSCI U.S. Investable Market Consumer Staples Index, which consists of large-, mid- and small-cap domestic companies. Its components include the manufacturers and distributors of food, beverages, tobacco, non-durable goods and personal products.

What You Should Know

• Expense ratio is 0.25%
• It’s up 11.8% year-to-date
• It has 112 holdings

The Latest News

• Major consumer staples brands, such as Procter & Gamble, Kraft and General Mills, have stepped up their advertising efforts in order to grab the growing home-cooking segment of the market, reports Stuart Elliott for The New York Times
• When consumers have opened their wallets lately, it’s generally for staple items that present a good value
• This is a trend that could continue into the holiday season
• Consumers are increasingly turning to private labels and store brands to cut down on costs, which could deliver a sucker-punch to the consumer staples name brands, Mike Pienciak for The Motley Fool says
• Name-brands aren’t taking this lying down:  Proctor & Gamble is promoting a price cut up to 10% off their consumer products portfolio, hoping to lure customers back