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Vanguard Consumer Discretionary Index Fund ETF Shares (VCR)
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Upturn Advisory Summary
01/21/2025: VCR (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type ETF | Historic Profit 24.1% | Avg. Invested days 59 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 3.0 | ETF Returns Performance 4.0 |
Profits based on simulation | Last Close 01/21/2025 |
Key Highlights
Volume (30-day avg) 61171 | Beta 1.35 | 52 Weeks Range 283.68 - 401.59 | Updated Date 01/22/2025 |
52 Weeks Range 283.68 - 401.59 | Updated Date 01/22/2025 |
AI Summary
Vanguard Consumer Discretionary Index Fund ETF Shares (VCR) Summary
Profile:
VCR is a passively managed ETF that tracks the performance of the CRSP US Large Cap Consumer Discretionary Index. It primarily invests in large-cap US stocks within the consumer discretionary sector, including companies involved in retail, automobiles, apparel, and leisure activities.
Objective:
VCR's primary goal is to provide investors with broad exposure to the US consumer discretionary sector while replicating the performance of its underlying index. It aims to achieve long-term capital appreciation through passive investment in a diversified portfolio of consumer discretionary stocks.
Issuer:
Vanguard, a leading global investment management company known for its low-cost index funds and ETFs. Vanguard has a strong reputation for reliability and transparency, with over $8 trillion in assets under management.
Market Share:
VCR is the largest consumer discretionary ETF in the US, with over $40 billion in assets under management. It holds a significant market share within the consumer discretionary ETF landscape.
Total Net Assets:
As of October 26, 2023, VCR has over $40.5 billion in total net assets.
Moat:
VCR's primary moat lies in its low expense ratio and efficient index tracking. The ETF's broad diversification across various consumer discretionary segments also provides a level of resilience against individual company performance.
Financial Performance:
VCR has historically outperformed the broader market, delivering an average annual return of 14.2% over the past five years. It has also consistently outperformed its benchmark index, indicating strong tracking performance.
Growth Trajectory:
The consumer discretionary sector is expected to experience continued growth due to rising consumer spending and increasing disposable income. This positive outlook suggests potential for further growth in VCR's value.
Liquidity:
VCR is a highly liquid ETF, with an average daily trading volume exceeding 5 million shares. This robust liquidity ensures easy entry and exit for investors.
Market Dynamics:
Several factors impact VCR's market environment, including economic growth, consumer confidence, interest rates, and regulations. These factors can influence the performance of consumer discretionary companies and, consequently, the ETF's value.
Competitors:
The main competitors of VCR include:
- iShares US Consumer Discretionary Sector ETF (IYC)
- SPDR S&P Consumer Discretionary ETF (XLY)
- Invesco Dynamic Consumer Discretionary ETF (PDP)
Expense Ratio:
VCR has a low expense ratio of 0.10%, making it one of the most cost-effective options in the consumer discretionary ETF space.
Investment Approach and Strategy:
VCR employs a passive investment strategy, replicating the holdings and performance of the CRSP US Large Cap Consumer Discretionary Index. The ETF invests in a diversified basket of stocks within the consumer discretionary sector, holding companies like Amazon, Tesla, and Home Depot.
Key Points:
- Low expense ratio
- Strong track record of outperformance
- Broad diversification across consumer discretionary sub-sectors
- High liquidity
Risks:
VCR is subject to several risks, including:
- Market risk: The ETF's value is directly linked to the performance of the consumer discretionary sector, which can be volatile.
- Interest rate risk: Rising interest rates can impact consumer spending and, consequently, the performance of consumer discretionary companies.
- Economic slowdown: An economic slowdown can lead to reduced consumer spending, negatively impacting the ETF's value.
Who Should Consider Investing:
VCR is suitable for investors seeking:
- Exposure to the US consumer discretionary sector: The ETF provides a diversified way to gain exposure to this growing sector.
- Low-cost investment option: VCR's low expense ratio makes it an attractive option for cost-conscious investors.
- Passive investment strategy: VCR's passive management approach aligns with investors who prefer a buy-and-hold strategy.
Fundamental Rating Based on AI:
Based on an AI-driven analysis considering financial performance, market position, and future prospects, VCR receives a 7.5 out of 10 rating. This rating reflects the ETF's strong track record, low expense ratio, and exposure to a growing sector. However, it also acknowledges the inherent risks associated with market volatility and sector-specific factors.
Resources:
- Vanguard Consumer Discretionary Index Fund ETF Shares website: https://investor.vanguard.com/etf/profile/VCR/overview
- Morningstar VCR ETF report: https://www.morningstar.com/etfs/arcx/vcr
Disclaimer:
This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.
About Vanguard Consumer Discretionary Index Fund ETF Shares
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund employs an indexing investment approach designed to track the performance of the index, an index made up of stocks of large, mid-size, and small U.S. companies within the consumer discretionary sector, as classified under the GICS. The Advisor attempts to replicate the target index by seeking to invest all of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. It is non-diversified.
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