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Consumer Staples ETF (VDC) Hits a New 52-Week High

Sweta Jaiswal, FRM

For investors looking for momentum, Vanguard Consumer Staples ETF VDC is probably a suitable pick. The fund just hit a 52-week high and is up 42.8% from its 52-week low price of $120.70/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

VDC in Focus

This ETF seeks to track the performance of the MSCI US Investable Market Consumer Staples 25/50 Index. It has AUM of $5.72 billion and charges 10 basis points in annual fees.

Why the Move?

Steep stock selloffs were observed in Wall Street on Sep 3. We believe that investors too started booking profits after a monster rally in August.Consumer staples is a non-cyclical sector and is likely to be less hammered even amid the worst selloffs. The sector can emerge as a true safe haven as it deals with items that consumers need on a daily basis. This is making funds like VDC an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 10.90, which gives cues of further rally.

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Vanguard Consumer Staples ETF (VDC): ETF Research Reports
 
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