4-Star ETFs Poised to Pop: Vanguard Consumer Staples

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Vanguard Consumer Staples ETF (NYS: VDC) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Vanguard Consumer Staples and see what CAPS investors are saying about the ETF right now.

Vanguard Consumer Staples facts


January 2004

Total Assets

$841 million

Investment Approach

Seeks to replicate the MSCI US Investable Market Consumer Staples 25/50 Index, which includes manufacturers and distributors of food, beverages, and tobacco, as well as producers of nondurable household goods and personal products.

Expense Ratio


Dividend Yield


1-Year / 3-Year / 5-Year Annual Returns

11.4% / 15.7% / 6.7%

Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight

Procter & Gamble (NYS: PG) (12.8%)
Coca-Cola (NYS: KO) (10.0%)
Philip Morris International (NYS: PM) (7.9%)


iShares Dow Jones U.S. Consumer Goods (NYS: IYK)
EGShares Emerging Markets Consumer (NYS: ECON)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 94% of the 79 members who have rated Vanguard Consumer Staples believe the ETF will outperform the S&P 500 going forward. These bulls include dcthatsme and johnw106.

Having gotten on board a couple of years ago, dcthatsme succinctly summed up the opportunity: "Love ETFs! This one gets you in on the action with PG, Wal-Mart etc. at a [lower investment] than what it would cost to buy the actual stock. Can't go wrong there."

Vanguard Consumer Staples even sports a cheapish expense ratio of 0.24%. That's lower than that of other consumer staples ETFs like iShares Dow Jones U.S. Consumer Goods (0.47%) and EGShares Emerging Markets Consumer (0.85%).

CAPS member johnw106 elaborates on the bull case:

I am a ETF fan bar none. Cost effective and instant diversification. Easy and perfect for a lazy man like me. ... And unless the world ends in a nuclear holocaust these companies will be producing profits and rewarding stock holders forever. This ETF is part of my core portfolio for buy and hold until I die or the universe implodes.

What do you think about Vanguard Consumer Staples, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the ETFs in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Coca-Cola, Philip Morris, and Wal-Mart. Motley Fool newsletter services have recommended buying shares of Procter & Gamble, Coca-Cola, Philip Morris, and Wal-Mart, as well as creating a diagonal call position in Wal-Mart. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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