VDC: VANGUARD CONSUMER STAPLES INDEX FUND ETF SHARES
What this ETF is trying to do
VDC is the ticker for the Vanguard Consumer Staples Index Fund ETF Shares. This ETF is designed to track companies that sell "staples." Staples are everyday items that people usually buy regardless of how the economy is doing, such as food, drinks, and household goods.
The fund invests in many different companies. Some of its Top Holdings include Walmart (13.34%), Costco Wholesale Corp (11.99%), Coca-Cola Co (9.63%), and Procter & Gamble Co (9.43%). Other large holdings include Philip Morris International (4.53%), PepsiCo Inc (4.52%), and Altria Group Inc (3.74%). Because this is a partial list, there are other companies in the fund as well. Please remember that holdings can change over time.
What the numbers show
When looking at an ETF, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price changed. Total return includes both the price change and any cash distributions (dividends) paid out.
For VDC, the one-year price return was approximately 6.29%. However, the one-year total return was higher, at about 8.65%. This shows that the total return includes the extra value from distributions. Looking further back, the three-year total return was approximately 37.44%, and the five-year total return was about 40.03%.
If you look at an estimated price from roughly one year ago ($212.97) compared to the current price ($226.37), a $10,000 investment in share price alone would have grown to approximately $10,630.
Income and distribution explanation
Some investors look for ETFs that pay them cash regularly. This is called a distribution. VDC has a distribution yield of approximately 2.16%. This means the cash paid out is about 2.16% of the ETF's price. The fund usually pays these distributions quarterly, and it has made four payments in the last 12 months.
It is important to remember that a high distribution yield does not mean you are guaranteed to earn that much as a total return. You must look at both the price changes and the distributions together to see how the investment performed overall.
NAV erosion explanation
"NAV erosion" refers to a decline in the actual value of the fund's assets. The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, based on price-based evidence, the ETF has an erosion-risk score of 100, which is labeled as "No price erosion detected." The erosion severity is listed as "good," and there is no severe erosion-risk flag.
Pros
• Steady Sector: It invests in consumer staples, which are essential products.
• Positive Returns: Both price returns and total returns have been positive over the one-year, three-year, and five-year periods.
• Low Risk of Price Erosion: The data shows no detected price erosion.
Cons
• Limited Sector Focus: Because it only focuses on consumer staples, it does not include other industries like technology.
• Lower Yield: The distribution yield is approximately 2.16%, which may be lower than what some income-focused investors seek.
Beginner takeaway
VDC is an ETF that focuses on everyday household brands. While the share price moves up and down, the total return includes both those price changes and the cash distributions paid to investors. The data shows a history of positive total returns and no detected price erosion.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | WALMART INC | WMT | 13.34% |
| 2 | COSTCO WHOLESALE CORP | COST | 11.99% |
| 3 | COCA-COLA CO | KO | 9.63% |
| 4 | PROCTER & GAMBLE CO | PG | 9.43% |
| 5 | PHILIP MORRIS INTERNATIONAL INC | PM | 4.53% |
| 6 | PEPSICO INC | PEP | 4.52% |
| 7 | ALTRIA GROUP INC | MO | 3.74% |
| 8 | MONDELEZ INTERNATIONAL INC CLASS A | MDLZ | 2.65% |
| 9 | TARGET CORP | TGT | 2.44% |
| 10 | COLGATE-PALMOLIVE CO | CL | 2.29% |