Vanguard Consumer Discretionary Index Fund ETF Shares (VCR)

ETF Vanguard Consumer Discretionary Index Fund ETF Shares (VCR)

Profile: VCR is an ETF that tracks the performance of the CRSP US Large Cap Consumer Discretionary Index. It invests in large-cap U.S. companies within the consumer discretionary sector, including industries such as retail, automobiles, restaurants, and media.

Objective: VCR's primary objective is to provide investment results that, before expenses, generally correspond to the price and yield performance of the CRSP US Large Cap Consumer Discretionary Index.

Issuer:

• Name: Vanguard
• Reputation and Reliability: Vanguard is a highly reputable and reliable investment firm with over $8 trillion in assets under management.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in the consumer discretionary sector.

Market Share: VCR has a market share of approximately 70% in the consumer discretionary ETF space.

Total Net Assets: As of October 26, 2023, VCR has total net assets of approximately $39.4 billion.

Moat:

• Low Fees: VCR has an expense ratio of 0.10%, which is significantly lower than the average for actively managed consumer discretionary funds.
• Diversification: VCR provides investors with broad exposure to the consumer discretionary sector, reducing single-stock risk.
• Tax Efficiency: VCR is a passively managed ETF, which generally results in lower turnover and capital gains distributions compared to actively managed funds.

Financial Performance:

• Historical Returns: VCR has generated an average annual return of 11.4% over the past 5 years.
• Benchmark Comparison: VCR has outperformed its benchmark index, the CRSP US Large Cap Consumer Discretionary Index, by an average of 0.5% per year over the past 5 years.

Growth Trajectory: The consumer discretionary sector is expected to grow in line with the overall economy.

Liquidity:

• Average Trading Volume: VCR has an average daily trading volume of over 10 million shares.
• Bid-Ask Spread: The bid-ask spread for VCR is typically tight, indicating high liquidity.

Market Dynamics: Factors affecting VCR's market environment include consumer confidence, economic growth, interest rates, and government policies.

Competitors:

• Consumer Discretionary Select Sector SPDR Fund (XLY): 20% market share
• iShares US Consumer Discretionary ETF (IYC): 10% market share

Expense Ratio: 0.10%

Investment Approach and Strategy:

• Strategy: VCR tracks the CRSP US Large Cap Consumer Discretionary Index.
• Composition: VCR holds a diversified portfolio of approximately 330 large-cap U.S. consumer discretionary stocks.

Key Points:

• Low-cost and tax-efficient way to gain exposure to the consumer discretionary sector.
• Diversified portfolio of large-cap U.S. companies.
• Outperformed its benchmark index over the past 5 years.

Risks:

• Market Risk: VCR's performance is tied to the performance of the consumer discretionary sector, which can be volatile.
• Interest Rate Risk: Rising interest rates can negatively impact consumer spending and, therefore, the performance of VCR.

Who Should Consider Investing:

• Investors seeking long-term exposure to the consumer discretionary sector.
• Investors looking for a low-cost and tax-efficient investment option.
• Investors who believe the consumer discretionary sector will outperform the broader market.

Fundamental Rating Based on AI: 8.5/10

Justification: VCR scores highly due to its low fees, strong track record, and favorable market position. The AI analysis also considers factors such as the ETF's portfolio composition, management team, and risk profile.

Resources:

• Vanguard website: https://investor.vanguard.com/etf/profile/VCR/overview
• CRSP US Large Cap Consumer Discretionary Index: https://www.ftserussell.com/products/indices/crsp-us-large-cap-consumer-discretionary-index

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.