The Vanguard Consumer Staples ETF (VDC) is an exchange-traded fund designed to track the performance of U.S. companies in the consumer staples sector. The ETF is managed by Vanguard and trades under the ticker VDC on the NYSE Arca.

Classified as a sector equity ETF, the fund invests in companies that manufacture or distribute essential consumer products, including food, beverages, household goods, personal care products, and other everyday necessities. Its strategy provides exposure to a sector that has historically demonstrated relatively stable demand across different economic cycles.

The ETF follows a passive management approach and seeks to replicate the performance of the MSCI US Investable Market Consumer Staples 25/50 Index, a benchmark composed of large-, mid-, and small-cap U.S. companies within the consumer staples sector.

Diversification and sector exposure

VDC provides exposure primarily associated with:

• Food and beverages.

• Personal care products.

• Household products.

• Food retail.

• Tobacco.

• Consumer staples.

• U.S. large-, mid-, and small-cap companies.

• Defensive consumer sector.

The portfolio includes companies across multiple consumer staples industries, including food and beverage producers, household and personal care manufacturers, grocery retailers, and other businesses focused on essential consumer goods.

The ETF's performance reflects the strength of the consumer staples sector, where demand for products typically remains relatively resilient during periods of economic slowdown.

Structure and costs

VDC shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund carries a low expense ratio, consistent with Vanguard's ETF lineup, and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Vanguard Consumer Staples ETF was launched in 2004 to provide low-cost exposure to the U.S. consumer staples sector through an exchange-traded investment vehicle.

Since inception, the fund has tracked companies operating in essential areas of the U.S. economy, including food and beverage producers, household product manufacturers, and grocery retailers.

In recent years, inflation, evolving consumer preferences, the growth of e-commerce, and continued product innovation have remained important factors shaping the performance of the companies represented in the ETF's portfolio.

Additional Information

Vanguard Consumer Staples ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $7.95 billion.

Over the past 12 months, Vanguard Consumer Staples ETF recorded a return of 8.22%, with its price trading between $206.70 and $244.19 during the same period.

The ETF is traded under the ticker VDC.