Vanguard Consumer Discretionary Index Fund ETF Shares (VCR)

Overview

Vanguard Consumer Discretionary Index Fund ETF Shares (VCR) seeks to track the performance of a benchmark index that measures the investment return of consumer discretionary stocks. It focuses on companies that provide goods and services that are considered non-essential or desired during periods of economic prosperity. The fund invests in a broadly diversified collection of stocks within the consumer discretionary sector and aims for long-term capital appreciation.

Reputation and Reliability

Vanguard is one of the world's largest investment management companies, known for its low-cost investment options and strong reputation for reliability.

Management Expertise

Vanguard has a well-established management team with extensive experience in managing index funds and ETFs.

Goal

The primary investment goal of VCR is to track the performance of the MSCI US Investable Market Consumer Discretionary 25/50 Index.

Investment Approach and Strategy

Strategy: VCR aims to replicate the holdings and weightings of the MSCI US Investable Market Consumer Discretionary 25/50 Index. This is a passive management strategy.

Composition VCR primarily holds stocks of companies in the consumer discretionary sector, including retailers, media companies, restaurants, and auto manufacturers.

Market Share: VCR holds a significant market share within the consumer discretionary ETF sector.

Total Net Assets (AUM): 12100000000

Key Competitors

• Consumer Discretionary Select Sector SPDR Fund (XLY)
• iShares U.S. Consumer Discretionary ETF (IYC)
• First Trust Consumer Discretionary AlphaDEX Fund (FXD)

Competitive Landscape

The consumer discretionary ETF market is competitive, with VCR and XLY dominating. VCR's advantage lies in its low expense ratio, while XLY offers higher liquidity. FXD uses an alpha-seeking index strategy, differentiating itself but potentially leading to higher volatility. IYC tracks a broader range of stocks in the sector.

Historical Performance: Historical performance data is available from Vanguard's website and financial data providers.

Benchmark Comparison: VCR's performance closely tracks the MSCI US Investable Market Consumer Discretionary 25/50 Index.

Expense Ratio: 0.1

Average Trading Volume

VCR typically exhibits a moderate to high average daily trading volume, indicating good liquidity.

Bid-Ask Spread

The bid-ask spread for VCR is usually tight, reflecting its liquidity and trading efficiency.

Market Environment Factors

Economic growth, consumer confidence, interest rates, and unemployment levels are key factors affecting VCR's performance.

Growth Trajectory

VCR's growth is tied to the overall health of the consumer discretionary sector and broader economic trends. Changes to strategy and holdings are minimal due to the passive index tracking approach.

Competitive Edge

VCR's primary competitive advantage is its low expense ratio, which helps it outperform similar funds over the long term. Vanguard's reputation for providing cost-effective investment options also attracts investors. The fund's broad diversification within the consumer discretionary sector reduces idiosyncratic risk. Furthermore, its passive investment approach ensures consistent tracking of the underlying index, minimizing active management risk.

Volatility

VCR's volatility is similar to that of the overall consumer discretionary sector.

Market Risk

VCR is subject to market risk, as its performance is tied to the performance of the underlying stocks in the consumer discretionary sector. Economic downturns can negatively impact consumer spending and thus the performance of the fund.

Ideal Investor Profile

The ideal investor for VCR is someone seeking exposure to the consumer discretionary sector with a long-term investment horizon.

Market Risk

VCR is suitable for both long-term investors and passive index followers.

Vanguard Consumer Discretionary Index Fund ETF Shares (VCR) offers low-cost access to the consumer discretionary sector by tracking the MSCI US Investable Market Consumer Discretionary 25/50 Index. Its main competitive advantage is its very low expense ratio and the reliability and strength of Vanguard's brand. The fund's performance will closely mirror the overall consumer discretionary sector, making it a good option for those seeking broad exposure. However, investors should be aware of the risks associated with the sector and the potential for economic downturns to impact consumer spending.

Data Sources:

• Vanguard.com
• Morningstar.com
• ETF.com
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market data and analysis are subject to change.