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Introduction
We last covered Vanguard Consumer Staples ETF (NYSEARCA:VDC) in May 2020. At that time, we pointed out VDC’s expensive valuation, and the downside risk in a post-COVID-19 world. Although we have not yet seen any meaningful correction of VDC’s fund price, we are now in a very different world than four years ago. Therefore, we think it is time to analyze VDC again and provide our analysis and update.
ETF Overview
VDC invests in a portfolio of mostly large-cap U.S. consumer staples stocks. The fund has underperformed the broader market in this bull market. However, its earnings growth outlook is not as bright as the S&P 500 index. Together with VDC’s elevated valuation, we are unable to give the fund a buy rating.
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Fund Analysis
VDC underperformed the broader market in the past 2 years
While VDC has experienced limited downside risk in the bear market in 2022,…
