The Vanguard Consumer Staples ETF (NYSEARCA:VDC) may not be the most exciting pick, but it has proven to be a solid performer. Year-to-date, VDC is up 8.5% and offers a 2.8% dividend yield. With an expense ratio lower than 92% of its competitors, this ETF is a reliable option for building a strong portfolio.
While individual stocks are often preferred for market dynamics, VDC provides exposure to top consumer staples companies without overloading a portfolio. This ETF tracks the MSCI US Investible Market Consumer Staples 25/50 Index, which includes small-, mid-, and large-cap U.S.-based consumer staples firms.
VDC’s top holdings include industry giants like Procter & Gamble Co (NYSE:PG), The Coca-Cola Co (NYSE:KO), and Philip Morris International Inc. These companies are known for their stability and resilience, making them attractive investments during uncertain times.
Consumer staples are considered counter-cyclical, performing well when growth stocks falter. In tough economic conditions, these companies maintain their competitiveness due to brand loyalty. Even in good times, consumer staple brands continue to thrive, offering a balance of stability and growth potential.
Overall, the Vanguard Consumer Staples ETF is a reliable option for investors seeking exposure to the consumer staples sector. With low expenses and a track record of consistent performance, VDC is worth considering for long-term investment strategies.