Average Daily Volume
173.1K
Fund Overview
The Vanguard Consumer Staples ETF (VDC) provides investors with exposure to U.S. companies in the consumer staples sector, which includes businesses that produce essential goods such as food, beverages, household products, and personal care items. This ETF is designed to track the performance of the MSCI US Investable Market Consumer Staples 25/50 Index, which includes large, mid, and small-cap stocks. Consumer staples are known for their defensive characteristics, as demand for these products tends to remain stable even during economic downturns. VDC is a cost-effective way to gain diversified exposure to this sector, with a low expense ratio typical of Vanguard's offerings.
- Asset Class
-
Equity
- Industry
-
Broad Consumer Staples
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 2.08 %
- Currency Hedged
-
No
- Portfolio Turnover
-
9 %
- Dividend Date
-
Why Invest in the VDC ETF?
Potential Benefits
- Provides exposure to defensive sector stocks that tend to be less volatile during economic downturns.
- Low expense ratio (0.10%) makes it a cost-efficient option for long-term investors.
- Diversified holdings across large, mid, and small-cap consumer staples companies.
- Strong historical performance with steady dividend payouts from established companies.
- Liquidity is high due to Vanguard's reputation and the ETF's large asset base.
Potential Risks
- Sector concentration risk—performance heavily tied to the consumer staples industry.
- Limited growth potential compared to more cyclical sectors like technology.
- Vulnerable to inflationary pressures affecting input costs for consumer goods.
- Regulatory risks, especially for companies in food, beverages, and tobacco.
- Currency and geopolitical risks for companies with significant international exposure.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+7.4%
|
+7.6%
|
-7.5%
|
+3.4%
|
-3.6%
|
+1.3%
|
+2.2%
|
-0.4%
|
-4.4%
|
+1.6%
|
-
|
-
|
| 2025 |
+1.9%
|
+4.4%
|
-2.2%
|
+0.9%
|
+1.7%
|
-1.9%
|
-1.3%
|
+1.4%
|
-1.9%
|
-2.6%
|
+3.8%
|
-1.7%
|
| 2024 |
+0.9%
|
+2.9%
|
+3.4%
|
-1.6%
|
+2.5%
|
-0.6%
|
+2.1%
|
+4.9%
|
+1.1%
|
-2.9%
|
+5.5%
|
-4.9%
|
| 2023 |
-0.2%
|
-2.2%
|
+3.9%
|
+3.6%
|
-5.4%
|
+3.3%
|
+2.2%
|
-3.2%
|
-4.6%
|
-1.7%
|
+3.9%
|
+3.4%
|
| 2022 |
-2.1%
|
-1.0%
|
+1.5%
|
+2.1%
|
-4.3%
|
-2.6%
|
+3.4%
|
-1.6%
|
-8.4%
|
+9.4%
|
+6.2%
|
-3.3%
|
| 2021 |
-4.1%
|
-0.7%
|
+8.1%
|
+1.8%
|
+1.8%
|
-0.7%
|
+1.6%
|
+1.1%
|
-3.9%
|
+3.6%
|
-1.4%
|
+9.9%
|
| 2020 |
-0.5%
|
-8.1%
|
-6.1%
|
+7.4%
|
+2.1%
|
-0.2%
|
+6.9%
|
+4.6%
|
-1.9%
|
-2.4%
|
+7.9%
|
+2.0%
|
| 2019 |
+5.4%
|
+2.0%
|
+3.4%
|
+2.5%
|
-4.2%
|
+5.0%
|
+2.4%
|
+1.6%
|
+1.9%
|
-0.5%
|
+1.5%
|
+2.6%
|
| 2018 |
+1.7%
|
-7.4%
|
-0.6%
|
-3.7%
|
-1.1%
|
+4.6%
|
+3.4%
|
+0.8%
|
+0.6%
|
+1.7%
|
+1.9%
|
-9.0%
|
| 2017 |
+1.3%
|
+4.5%
|
-0.2%
|
+1.1%
|
+2.2%
|
-2.2%
|
+0.6%
|
-1.2%
|
-0.6%
|
-1.5%
|
+5.6%
|
+2.1%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
COST
|
COSTCO WHOLESALE CORP |
13.2 % |
|
WMT
|
WALMART INC |
12.3 % |
|
PG
|
PROCTER & GAMBLE CO |
11.3 % |
|
KO
|
COCA-COLA CO |
7.6 % |
|
PEP
|
PEPSICO INC |
4.7 % |
|
PM
|
PHILIP MORRIS INTERNATIONAL INC |
4.6 % |
|
MO
|
ALTRIA GROUP INC |
3.1 % |
|
MDLZ
|
MONDELEZ INTERNATIONAL INC CLASS A |
2.8 % |
|
CL
|
COLGATE-PALMOLIVE CO |
2.4 % |
|
TGT
|
TARGET CORP |
1.9 % |
Top 10 holdings shown, out of 104 total holdings.
Related ETFs: VDC vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VDC seeks to track the performance of the MSCI US Investable Market Consumer Staples 25/50 Index, which includes U.S. companies in the consumer staples sector across large, mid, and small-cap stocks. The index is market-cap weighted, meaning larger companies have a greater influence on performance. The ETF primarily holds common stocks of well-established firms like Procter & Gamble, Coca-Cola, and PepsiCo. VDC is passively managed and rebalances periodically to align with the index composition, ensuring minimal tracking error.
Frequently Asked Questions
What types of companies are included in VDC?
VDC holds U.S. companies in the consumer staples sector, including producers of food, beverages, household products, and personal care items.
Does VDC pay dividends?
Yes, VDC distributes dividends quarterly, as many consumer staples companies have a history of consistent dividend payments.
How does VDC compare to a total market ETF?
VDC is sector-specific, offering targeted exposure to consumer staples, whereas a total market ETF provides broad exposure across all sectors, including higher-growth industries.
Is VDC suitable for income-focused investors?
Yes, due to the sector’s stable cash flows and dividend-paying nature, VDC can be a good fit for income-seeking investors.
Industry Overview
The consumer staples sector, represented by ETFs like Vanguard Consumer Staples ETF (VDC), consists of companies that produce essential goods such as food, beverages, household products, and personal care items. This sector is considered defensive, as demand for these products remains relatively stable regardless of economic conditions. Investing in consumer staples can provide portfolio stability during market downturns, though growth may lag behind more cyclical sectors during economic expansions. VDC offers broad exposure to this sector, including well-known brands with strong cash flows and consistent dividends.
Alternative Comparison
Compared to the Consumer Staples Select Sector SPDR Fund (XLP), VDC offers a broader exposure by including mid and small-cap stocks, whereas XLP focuses solely on large-cap companies. VDC also has a slightly lower expense ratio (0.10% vs. XLP’s 0.12%). Another peer, the iShares U.S. Consumer Staples ETF (IYK), has a higher expense ratio (0.40%) and includes a mix of consumer staples and discretionary stocks, making VDC a more focused and cost-efficient option for pure staples exposure.
Issuer Overview
Vanguard is one of the largest and most reputable investment management companies, known for its low-cost index funds and ETFs. The firm is structured as a client-owned entity, which allows it to pass on cost savings to investors through low expense ratios. Vanguard’s ETFs are widely regarded for their transparency, liquidity, and adherence to passive investment strategies.
Conclusion
VDC is a solid choice for investors seeking stable, defensive exposure to the consumer staples sector. Its low expense ratio, broad diversification, and strong track record make it an attractive option for long-term portfolios. While it may not deliver explosive growth, its resilience during economic downturns can provide valuable downside protection.
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