VCR ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The Vanguard Consumer Discretionary ETF (VCR) invests across the entire US consumer discretionary sector. It carries heavy weightings in consumer-related stocks such as Amazon and Tesla and is known for its low expense ratio, making it a representative vehicle for investors tracking the consumer discretionary outlook and the movement of related stocks.
SubscribeWhat Is the Vanguard Consumer Discretionary ETF?
It is a core sector ETF that tracks the MSCI US IMI Consumer Discretionary 25/50 Index and holds a broad range of large-, mid-, and small-cap stocks in the US consumer discretionary sector.
It suits investors who want diversified exposure to the US consumer economy and the consumer discretionary sector as a whole.
It is a passively managed (index-tracking) ETF operated by Vanguard.
How Does the Vanguard Consumer Discretionary ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | MSCI US IMI Consumer Discretionary 25/50 Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly |
| Expense Ratio | 0.09% |
The fund holds US large-, mid-, and small-cap stocks in the consumer discretionary sector in proportion to their market capitalization using full replication, and it approximates the index's characteristics through sampling when regulatory constraints apply. Rebalancing is carried out quarterly, following decisions by the index committee.
- Exposure to a wide market-cap spectrum, from large caps to small caps
- A low-cost Vanguard sector ETF
Vanguard Consumer Discretionary ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $5.8B, and the Expense Ratio is 0.09% per year.
Compared with XLY and FDIS, which track the same sector, it differs in fees, liquidity, and market-cap spectrum.
Vanguard Consumer Discretionary ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe consumer discretionary sector is highly volatile depending on consumer sentiment and the interest rate environment, and recently it has continued to rise and fall in response to earnings from large consumer companies and consumer data.
Given the cyclical nature of the sector, inflows tend to increase during economic expansions, while money tends to rotate into defensive sectors when concerns about an economic slowdown grow. Fund flows also tend to become more volatile around each release of consumer-related data.
Vanguard Consumer Discretionary ETF Strengths and Weaknesses
Its strengths are broad exposure to the consumer discretionary sector and a low expense ratio, while its weaknesses are concentration in top holdings and sensitivity to the economic cycle.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Vanguard Consumer Discretionary ETF
XLY and FDIS, shown in the table, are comparable ETFs that track the same consumer discretionary sector but differ in issuer, fees, and liquidity, while IYC is a similar sector ETF that uses a different index methodology. XRT is a related sector ETF that uses an equal-weighted approach focused on retail, so its holdings differ from this ETF's. RSPD is a variant that also holds the consumer discretionary sector on an equal-weighted basis, easing the concentration in large caps.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 XLY | State Street Consumer Discretionary Select Sector SPDR ETF | $114.26 | +1.0% | $21.8B | 0.08% | 0.82% | -3.9% |
 FDIS | Fidelity MSCI Consumer Discretionary Index ETF | $99.11 | +0.9% | $1.6B | 0.08% | 0.78% | -2.8% |
 IYC | iShares U.S. Consumer Discretionary ETF | $99.35 | +0.3% | $1.2B | 0.37% | 0.53% | -4.1% |
 XRT | State Street SPDR S&P Retail ETF | $87.42 | -0.3% | $385.8M | 0.35% | 0.85% | +3.1% |
 PEJ | Invesco Leisure and Entertainment ETF | $65.28 | +0.2% | $350.9M | 0.58% | 0.51% | +9.2% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| AMZN | Amazon.com Inc | 0.45% | $249.09 | +0.4% | $2.69T | 20.0 | - |
| TSLA | Tesla Inc | 0.34% | $391.62 | +5.2% | $1.55T | 430.8 | - |
| HD | Home Depot Inc | 0.10% | $319.38 | -0.1% | $318.6B | 22.4 | 2.9% |
| MCD | McDonald's Corp | 0.07% | $250.83 | +0.9% | $177.5B | 20.4 | 2.99% |
| TJX | TJX Companies Inc | 0.05% | $143.70 | -0.9% | $158.1B | 26.6 | 1.31% |
Vanguard Consumer Discretionary ETF Investor Checkpoints
These are points to review before investing in VCR. Because it is a sector-concentrated ETF, it is wise to check in advance its sensitivity to the economic cycle, the weighting of its top holdings, and its expense level.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cumulative cost impact over a long holding period | Low expense level |
| 📊 Top Holdings Concentration | Track the weighting trend of top holdings such as Amazon and Tesla | Large-cap weighting is heavy |
| 📈 Economic Sensitivity | Monitor changes in consumer data and the interest rate environment | Sensitive to the economic cycle |
| 💱 Exchange Rate | Impact on returns converted to Korean won | No currency hedge applied |
Concentration in top holdings and sensitivity to the economic cycle are the main drivers of short-term volatility. When consumer sentiment weakens, the sector as a whole can decline together, so caution is warranted.
It is regarded as a core sector ETF suited to investors who want diversified exposure to the entire US consumer discretionary sector. It can be considered by those who want exposure to the consumer economy while keeping the cost burden low.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 1, 2026.
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