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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.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 14, placing it in bottom 13%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $7.38 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 includes stocks of U.S. companies within the consumer discretionary sector.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.58%.
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 98.80% of the portfolio.
Looking at individual holdings, Amazon.com Inc. (AMZN - Free Report) accounts for about 22.94% of total assets, followed by Tesla Inc. (TSLA - Free Report) and Home Depot Inc. (HD - Free Report) .
Performance and Risk
The ETF return is roughly 30.60% and is up about 46.39% so far this year and in the past one year (as of 11/05/2021), respectively. VCR has traded between $242.80 and $352.75 during this last 52-week period.
The ETF has a beta of 1.26 and standard deviation of 24.71% for the trailing three-year period, making it a medium risk choice in the space. With about 295 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 outstanding 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 $2.01 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $23.55 billion. FXD has an expense ratio of 0.63% and XLY charges 0.12%.
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.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 14, placing it in bottom 13%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $7.38 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 includes stocks of U.S. companies within the consumer discretionary sector.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.58%.
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 98.80% of the portfolio.
Looking at individual holdings, Amazon.com Inc. (AMZN - Free Report) accounts for about 22.94% of total assets, followed by Tesla Inc. (TSLA - Free Report) and Home Depot Inc. (HD - Free Report) .
Performance and Risk
The ETF return is roughly 30.60% and is up about 46.39% so far this year and in the past one year (as of 11/05/2021), respectively. VCR has traded between $242.80 and $352.75 during this last 52-week period.
The ETF has a beta of 1.26 and standard deviation of 24.71% for the trailing three-year period, making it a medium risk choice in the space. With about 295 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 outstanding 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 $2.01 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $23.55 billion. FXD has an expense ratio of 0.63% and XLY charges 0.12%.
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.