Consumer Staples ETF (VDC) Hits New 52-Week High
For investors seeking momentum, Vanguard Consumer Staples ETF (VDC) is probably on radar now. The fund just hit a 52-week high and is up about 58% from its 52-week low price of $84.62/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
VDC in Focus
VDC focuses on the consumer staples segment of the U.S. market. The fund has a large-cap focus with key holdings in the packaged foods, household products, soft drinks and tobacco segments. It charges investors 10 basis points a year in fees and has top holdings in Procter & Gamble, Coca-Cola and PepsiCo (see: all the Consumer Staples ETFs here).
Why the Move?
The consumer staples sector has been an area to watch lately as solid job additions, slowly rising wages and cheap fuel are leaving consumers with extra money to spend on a wide range of products. Further, an improving U.S. economy, a recovering housing market and stepped-up service activities are making the consumer segment a great place to stay invested in.
More Gains Ahead?
Currently, VDC has a Zacks ETF Rank of 3 or ‘Hold’ rating with a Medium risk outlook so it is hard to get a handle on its future returns in one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little further.
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VIPERS-CONS STA (VDC): ETF Research Reports
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