About VCR ETF
VCR delivers vanilla exposure to the US consumer discretionary space and is managed by Vanguard that has a total AUM of $5.1T. Unlike the benchmark, VCR also has holdings in Software and IT and in Personal and Household Products and Services. It has 374 holdings and has significant concentration risk as almost 46% of the assets are allocated to the top 10 holdings.
Consumer Discretionary ETFs Head to Head: XLY vs. VCR
About the Fund Manager:
Founded in 1975, Vanguard is the second largest asset manager in the world managing $5.1T. It is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock's iShares
How did we identify this ETF:
A complete pool of 2100+ ETFs are screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R-Squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the inhouse research / quant analysts team. VCR is a well-run fund with an AUM of $2.5B that delivers its index extremely well, and its expense ratio of 0.1% is cheap for this segment. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.