"VCR tracks the consumer discretionary sector, giving investors exposure to companies whose revenues depend on how freely Americans are spending. The return engine is cyclicality, making VCR a growth-oriented, macro-dependent fund rather than a defensive or income-generating one."
"Amazon and Tesla together make up roughly 40% of the fund. Amazon generates the majority of its operating profit from AWS cloud infrastructure and advertising, not retail, while Tesla's valuation is driven largely by AI and autonomy narratives."
"On a ten-year basis, VCR has returned 230%, which is a strong long-run result. However, 2026 has been rough, with Amazon off 10% and Tesla down 17% year-to-date, dragging the fund down despite solid results from other holdings."
Vanguard Consumer Discretionary ETF tracks the consumer discretionary sector, focusing on companies reliant on consumer spending. It has a 0.09% expense ratio and aims for capital appreciation rather than income, with a 0.7% dividend yield. The fund is significantly impacted by Amazon and Tesla, which together constitute about 40% of its portfolio. Despite a strong ten-year return of 230%, the fund has struggled in 2026 due to declines in Amazon and Tesla's stock prices, overshadowing positive performances from other holdings like TJX.
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