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 14.1% from its 52-week low price of $177.86/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 $6.86 billion and charges 10 basis points in annual fees.
Why the Move?
Market participants do not seem to be very upbeat about the current market scenario and the outlook ahead. The Russia-Ukraine war saga, high inflation levels, Federal Reserve’s aggressive stance on rate hikes and resurging COVID-19 cases in China are keeping investors on edge, adding to the market gyrations this year. The consumer staples sector is known for its non-cyclical nature and acts as a safe haven during unstable market conditions. Moreover, like utility, consumer staples is considered a stable sector for the long term as its players are likely to offer decent returns. Investors can consider parking their money in the non-cyclical consumer staples sector during an economic recession. 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 13.50, which gives cues of a further rally.
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Vanguard Consumer Staples ETF (VDC): ETF Research Reports
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