The Vanguard Consumer Staples ETF Could End the Year Above $200

The United States stock market performed excellently this year, with several exchange-traded funds (ETFs) recording gains.

VDC up by More Than 15% in 2021

The Vanguard Consumer Staples ETF (VDC) is one of the best performing funds in the consumer staples sector after rising by more than 15% so far this year. The fund could rally higher to end the year with some impressive wins.

The ETF was launched on 01/26/2004. It is a passively managed exchange-traded fund designed to offer investors broad exposure to the Consumer Staples – Broad segment of the United States stock market.

VDC is sponsored by Vanguard, with more than $6 billion in assets under management, making it one of the largest ETFs attempting to match the performance of the Consumer Staples – Broad sector of the stock market. Before fees and expenses, VDC is designed to match the performance of the MSCI US Investable Market Consumer Staples 25/50 Index before fees and expenses.

The MSCI US Investable Market Consumer Staples 25/50 Index, meanwhile, measures the investment returns of stocks operating in the consumer staples sector of the market. Year-to-date, VDC’s value has increased by nearly 16%. The fund is currently trading above $196 per share and could rally higher if the market momentum is maintained.

VDC’s annual operating expenses stand at 0.10%, making it one of the least expensive products in the space. The fund has a 12-month trailing dividend yield of 2.20%.

VDC Could Top the $200 Mark Soon

Following its recent rally, VDC could look to top the $200 mark over the next few trading sessions. The fund invests 100% of its portfolio in consumer staple stocks, with some of its biggest holdings being Procter & Gamble Co. (PG), Walmart Inc. (WMT) and Coca-Cola Co. (KO).

 

VDC’s MACD line is way above the neutral zone, indicating a strong bullish trend. The RSI of 67 shows that VDC is currently heading to the oversold region. If the current market momentum is maintained, then VDC could rally past the $200 mark soon.

The fund has a beta of 0.66 and a standard deviation of 18.56% for the trailing three-year period. Thus, making it a medium risk choice in the space