VDC & FSTA: A Most Trivial Pursuit

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Right then, a spot of bother for the discerning investor, what? One finds oneself faced with a choice – a positively bewildering one, at that – between the Vanguard Consumer Staples ETF (VDC) and its rival, the Fidelity MSCI Consumer Staples Index ETF (FSTA). Both, you see, aim to capture the rather pedestrian performance of companies providing the necessities of life – the sort of thing one simply must have, regardless of economic gloom. A dashedly dull business, one might think, but surprisingly fraught with nuance.

The question, naturally, is which of these two funds will best line one’s pockets. It’s a bit like choosing between two perfectly serviceable umbrellas on a damp Tuesday – both will keep one dry, but one might possess a certain… je ne sais quoi. Let’s delve into the details, shall we?

A Quick Reckoning

Metric VDC FSTA
Issuer Vanguard Fidelity
Expense Ratio 0.09% 0.08%
1-Year Return (as of Feb. 14, 2026) 8.45% 8.16%
Dividend Yield 2.10% 2.18%
Beta (5Y Monthly) 0.64 0.64
AUM $9.1 billion $1.4 billion

Now, FSTA, bless its heart, is ever so slightly cheaper, and throws off a marginally larger dividend. For the investor possessed of a keen eye for a bargain – or simply unwilling to part with a few extra pennies – this is, of course, a consideration. Though one suspects the difference won’t make or break a fortune.

Performance and the Perilous Business of Risk

Regarding performance, the two funds are, shall we say, remarkably chummy. The maximum drawdown over five years is almost identical (-16.56% for VDC, -16.57% for FSTA). And a thousand pounds invested five years ago would have blossomed into approximately £1,409 with VDC, and a mere £1,406 with FSTA. A trifling difference, wouldn’t you agree? It’s all rather like choosing between two equally reliable motorcars – both will get one from A to B, but one might have a slightly more polished bonnet.

What’s Inside the Goodie Bag?

Both funds, you see, are filled to the brim with the usual suspects: Costco Wholesale, Walmart, and Procter & Gamble. A perfectly respectable bunch, providing the necessities of life with admirable efficiency. FSTA tracks the MSCI USA IMI Consumer Staples 25/50 Index and holds 96 stocks, while VDC spreads its bets across 105. A handful more stocks, perhaps, but it hasn’t exactly set the Thames on fire, has it?

The funds have both been around for a good twelve years, establishing themselves as solid, dependable options in the sector ETF world. One feels quite safe in their capable hands, rather like a gentleman enjoying a brandy by the fire.

The Bottom Line – A Most Important Consideration

In truth, VDC and FSTA are practically two peas in a pod. They’ve delivered almost identical returns and experienced similar levels of volatility. The portfolios are remarkably alike, and the differences are, frankly, rather minor. One might say they’re as similar as two drops of water.

However, there is one point worth pondering. VDC boasts a considerably larger AUM ($9.1 billion versus $1.4 billion). This means it’s more liquid, making it easier for investors to trade large amounts without unduly affecting the price. For the everyday investor, this may not be a concern, but for those dealing in substantial sums, it’s a factor worth considering.

Ultimately, the choice between VDC and FSTA is a bit like choosing between two perfectly good hats. Both will keep one’s head warm, but one might simply feel more comfortable. And in the world of investing, a little bit of comfort can go a long way.

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2026-02-15 02:22