ETF Spotlight: Vanguard Consumer Staples (VDC) | ETF Trends

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

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.