Vanguard’s VDC Outshines Fidelity’s FSTA in AUM and Tenure

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In the grand ballroom of the investment world, where the orchestra plays the tune of market fluctuations, two dashing suitors vie for the attention of discerning investors: VDC, the elder statesman with a well-stuffed portfolio and a twinkle in his eye, and FSTA, the sprightly upstart with a dash of cheek and a pocketful of coupons. One waltzes in with $8.5 billion in assets under management, while the other bows with $1.3 billion-yet both claim to serve the same delectable dish of consumer staples. A curious conundrum, wouldn’t you say?

Both funds, like two gentlemen at a garden party, offer broad exposure to the U.S. consumer staples sector-a realm of companies that peddle essentials from toothpaste to tinned tomatoes. The question is not whether they serve the same tea, but rather which teacup one prefers to sip from. Shall we inspect the china? 🫖

Snapshot (cost & size)

Metric FSTA VDC
Issuer Fidelity Vanguard
Expense ratio 0.08% 0.09%
1-yr total return (as of Oct. 31, 2025) 0.20% 0.33%
Dividend yield 2.3% 2.3%
AUM $1.3 billion $8.5 billion

FSTA, with its slightly trimmer waistline of 0.08%, offers a dash of frugality, though the difference is so slight it’s akin to debating whether a teacup is half full or half empty. Both serve the same dividend yield, a modest 2.3%, like two butlers offering the same slice of scone. Yet VDC, with its stately $8.5 billion, boasts a track record stretching back to 2004-a veritable patriarch compared to FSTA’s sprightly 2013 debut.

Performance & risk comparison

Metric FSTA VDC
Max drawdown (5 y) (17.08%) (16.54%)
Growth of $1,000 over 5 years $1,235 $1,235

What’s inside

Vanguard Consumer Staples ETF, or VDC, is a seasoned hostess at a dinner party, offering 103 carefully curated guests-98% of whom are stalwarts of the consumer defensive sector. Her guest list includes the likes of Walmart, Costco Wholesale, and Procter & Gamble, each invited with the precision of a well-rehearsed script. With nearly 22 years of experience, she knows how to balance the menu and keep the conversation flowing without a single structural hiccup.

Fidelity MSCI Consumer Staples Index ETF, or FSTA, is the clever young cousin who insists on hosting a nearly identical gathering. Costco, Walmart, and Procter & Gamble all appear, each with their own slight variations in the seating chart. Neither fund dares to flirt with leverage, foreign currency hedging, or ESG overlays-choices that leave them as unadorned as a well-tied cravat.

For those seeking to deepen their understanding of such matters, the full guide awaits at this link, though one suspects it may read like a particularly dry account of a cricket match.

Foolish take

An investor seeking to partake in the consumer staples sector might well find themselves in a quandary, much like a gentleman deciding between two equally appealing cigars. The top holdings are so similar they might as well be twins at a garden party-Costco, Walmart, and Procter & Gamble, each seated in nearly the same order and portion size. Both funds are as North American as a steaming pot of Earl Grey, with no foreign distractions to muddy the waters.

VDC, with its 22-year tenure and 9.2% since inception, is the sort of fund that inspires confidence like a well-worn walking stick. FSTA, though younger, has managed an 8.3% return since 2013-a dashingly competent performance, if one overlooks the age gap.

Expense ratios and dividend yields, those two old companions, are so closely matched between the two that even a magnifying glass might struggle to discern the difference. Investors may find themselves choosing based on which fund manager’s name rings a bell in their financial portfolio-a decision as arbitrary as selecting a hat based on its color.

Glossary

ETF: Exchange-traded fund; a charming basket of securities that prances across the stock exchange like a well-dressed gentleman.
Expense ratio: Annual fee, expressed as a percentage, that funds charge to cover operating costs-akin to the price of a single scone at a lavish afternoon tea.
Dividend yield: Annual dividends paid by a fund or stock divided by its current price, shown as a percentage. Think of it as the interest rate on a particularly generous loan from the company.
Beta: A measure of an investment’s volatility relative to the overall market, typically the S&P 500. Imagine it as the shakiness of a bridge during a summer storm.
AUM: Assets under management; the total market value of assets a fund manages. A number so large it makes a million look like a mere trifle.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period. A dip in the dance floor, if you will.
Consumer staples sector: Industry segment focused on companies providing essential products like food, beverages, and household goods. The sort of goods one cannot do without, even in the depths of a financial slump.
Holdings: The individual stocks or securities owned by a fund. The guests at a dinner party, each with their own peculiarities.
Sector exposure: The proportion of a fund’s assets invested in a particular industry or sector. A bit like the amount of jam on one’s scone-just right, or perhaps a touch excessive.
Issuer: The company or financial institution that creates and manages an ETF or mutual fund. The host of the evening’s festivities.
Track record: The historical performance and longevity of a fund since its inception. A resume written in the language of numbers and dates.
Drawdown: A decline in investment value from a peak to a trough, before a new peak is achieved. A temporary setback, much like a misplaced monocle at a formal dinner.

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2025-11-12 22:53