Meet the Low-Cost Vanguard ETF That Went Up on the Worst Day for the S&P 500 Since June 2020

On April 3, the S&P 500 (SNPINDEX: ^GSPC) fell 4.8%, the worst diminution for the S&P 500 since June 11, 2020. The Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 6%.However, concern absorption steadfast Vanguard's exchange-traded money (ETF) that tracks the user staples assemblage -- the Vanguard Consumer Staples ETF (NYSEMKT: VDC) -- went up somewhat connected the day. The ETF besides outperformed the large indexes the pursuing time -- erstwhile the S&P 500 and Nasdaq fell different 5%.

Year to date, the ETF is down conscionable 0.3% compared to a 13.7% driblet successful the S&P 500 and a staggering 19.3% diminution successful the Nasdaq Composite, astatine the clip of this writing. And with a specified 0.09% disbursal ratio and 2.4% dividend yield, the money is simply a low-cost mode to make passive income without racking up precocious fees.

Here's wherefore the ETF remains a bully prime for risk-averse investors who privation to summation diversified vulnerability to a assortment of dividend-paying worth stocks.

One look astatine the apical holdings of the Vanguard Consumer Staples ETF compared to Vanguard S&P 500 ETF (NYSEMKT: VOO), and it's casual to spot wherefore the money is holding up good amid a growth-stock-fueled sell-off.

Data source: Vanguard

Most of the apical holdings successful the S&P 500 are tech-focused companies that person sold disconnected considerably successful 2025. Meanwhile, the largest holdings successful the Vanguard Consumer Staples ETF are established, dividend-paying companies whose valuations aren't based connected breakneck maturation projections.

Most Costco stores are successful the U.S., and little than fractional of U.S. income are imported from China, Mexico, and Canada. Thus, Costco is reasonably resistant to tariffs.

Similarly, Walmart is simply a mostly U.S. business. Still, its planetary proviso concatenation makes it much susceptible to tariffs, truthful it makes consciousness wherefore Walmart has been a weaker show compared to different apical holdings successful the fund.

Procter & Gamble and Coca-Cola person sizeable planetary exposure, but some companies person precocious margins and impeccable pricing power, making them well-positioned to walk on higher costs to consumers.