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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.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $5.49 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 0.80%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 99.90% of the portfolio.
Looking at individual holdings, Amazon.com Inc (AMZN - Free Report) accounts for about 22.75% of total assets, followed by Tesla Inc (TSLA - Free Report) and Home Depot Inc/the (HD - Free Report) .
The top 10 holdings account for about 57.33% of total assets under management.
Performance and Risk
So far this year, VCR has gained about 2.73%, and was up about 14.07% in the last one year (as of 06/24/2024). During this past 52-week period, the fund has traded between $247.89 and $318.12.
The ETF has a beta of 1.30 and standard deviation of 24.63% for the trailing three-year period, making it a medium risk choice in the space. With about 308 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Consumer Discretionary ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VCR is a sufficient option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
IShares U.S. Home Construction ETF (ITB - Free Report) tracks Dow Jones U.S. Select Home Construction Index and the Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) tracks Consumer Discretionary Select Sector Index. IShares U.S. Home Construction ETF has $2.74 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.37 billion. ITB has an expense ratio of 0.40% and XLY charges 0.09%.
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.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $5.49 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 0.80%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Consumer Discretionary sector--about 99.90% of the portfolio.
Looking at individual holdings, Amazon.com Inc (AMZN - Free Report) accounts for about 22.75% of total assets, followed by Tesla Inc (TSLA - Free Report) and Home Depot Inc/the (HD - Free Report) .
The top 10 holdings account for about 57.33% of total assets under management.
Performance and Risk
So far this year, VCR has gained about 2.73%, and was up about 14.07% in the last one year (as of 06/24/2024). During this past 52-week period, the fund has traded between $247.89 and $318.12.
The ETF has a beta of 1.30 and standard deviation of 24.63% for the trailing three-year period, making it a medium risk choice in the space. With about 308 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Consumer Discretionary ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VCR is a sufficient option for those seeking exposure to the Consumer Discretionary ETFs area of the market. Investors might also want to consider some other ETF options in the space.
IShares U.S. Home Construction ETF (ITB - Free Report) tracks Dow Jones U.S. Select Home Construction Index and the Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) tracks Consumer Discretionary Select Sector Index. IShares U.S. Home Construction ETF has $2.74 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.37 billion. ITB has an expense ratio of 0.40% and XLY charges 0.09%.
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.