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Should You Invest in the Vanguard Consumer Discretionary ETF (VCR)?
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If you're interested in broad exposure to the Consumer Discretionary - Broad segment of the equity market, look no further than the Vanguard Consumer Discretionary ETF (VCR - Free Report) , a passively managed exchange traded fund launched on 01/26/2004.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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 Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $5.27 billion, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. VCR seeks to match the performance of the MSCI US Investable Market Consumer Discretionary 25/50 Index before fees and expenses.
The MSCI US Investable Market Consumer Discretionary 25/50 Index is designed to transition in and out of securities affected by pending updates to the consumer discretionary sector.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.83%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 100% of the portfolio.
Looking at individual holdings, Amazon.com Inc. (AMZN - Free Report) accounts for about 22.57% of total assets, followed by Tesla Inc. (TSLA - Free Report) and Home Depot Inc. (HD - Free Report) .
The top 10 holdings account for about 61.30% of total assets under management.
Performance and Risk
The ETF return is roughly 41.89% and was up about 39.95% so far this year and in the past one year (as of 12/20/2023), respectively. VCR has traded between $213.95 and $308.23 during this last 52-week period.
The ETF has a beta of 1.28 and standard deviation of 25.04% for the trailing three-year period, making it a medium risk choice in the space. With about 311 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Consumer Discretionary ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VCR is an excellent option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
First Trust Consumer Discretionary AlphaDEX ETF (FXD - Free Report) tracks StrataQuant Consumer Discretionary Index and the Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) tracks Consumer Discretionary Select Sector Index. First Trust Consumer Discretionary AlphaDEX ETF has $1.43 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.85 billion. FXD has an expense ratio of 0.61% and XLY charges 0.10%.
Bottom Line
To 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.
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Should You Invest in the Vanguard Consumer Discretionary ETF (VCR)?
If you're interested in broad exposure to the Consumer Discretionary - Broad segment of the equity market, look no further than the Vanguard Consumer Discretionary ETF (VCR - Free Report) , a passively managed exchange traded fund launched on 01/26/2004.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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 Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $5.27 billion, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. VCR seeks to match the performance of the MSCI US Investable Market Consumer Discretionary 25/50 Index before fees and expenses.
The MSCI US Investable Market Consumer Discretionary 25/50 Index is designed to transition in and out of securities affected by pending updates to the consumer discretionary sector.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.83%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 100% of the portfolio.
Looking at individual holdings, Amazon.com Inc. (AMZN - Free Report) accounts for about 22.57% of total assets, followed by Tesla Inc. (TSLA - Free Report) and Home Depot Inc. (HD - Free Report) .
The top 10 holdings account for about 61.30% of total assets under management.
Performance and Risk
The ETF return is roughly 41.89% and was up about 39.95% so far this year and in the past one year (as of 12/20/2023), respectively. VCR has traded between $213.95 and $308.23 during this last 52-week period.
The ETF has a beta of 1.28 and standard deviation of 25.04% for the trailing three-year period, making it a medium risk choice in the space. With about 311 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Consumer Discretionary ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VCR is an excellent option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
First Trust Consumer Discretionary AlphaDEX ETF (FXD - Free Report) tracks StrataQuant Consumer Discretionary Index and the Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) tracks Consumer Discretionary Select Sector Index. First Trust Consumer Discretionary AlphaDEX ETF has $1.43 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.85 billion. FXD has an expense ratio of 0.61% and XLY charges 0.10%.
Bottom Line
To 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.