What is the main difference between VDC and VPU?

VDC (Consumer Staples Vanguard ETF) provides exposure to companies selling essential daily goods like food and household products. VPU (Utilities Vanguard) focuses on companies generating and distributing electricity, gas, and water. While both are defensive sectors, Consumer Staples deals with consumer demand, whereas Utilities deals with infrastructure and regulated energy services.

Why are expense ratios important in ETF comparisons?

The expense ratio is the annual fee charged by the fund provider to manage your investment. Lower fees generally mean more of your money stays invested rather than going to costs. VDC and VPU both have a low expense ratio of 0.09%, meaning investors pay 9 cents annually for every $100 invested in either fund.

What is the difference between market capitalisation and sector allocation?

Market capitalisation refers to the total value of a company's shares of stock, indicating its size. Sector allocation refers to how much of a fund is invested in specific industries. VDC allocates to Consumer Defensive, while VPU allocates to Utilities. These sectors behave differently under varying economic conditions despite potentially containing companies of similar size.

Which fund has more net assets?

Based on the provided data, VPU (Utilities Vanguard) has net assets of $8.0 billion, which is slightly higher than VDC (Consumer Staples Vanguard ETF) at $7.8 billion. Higher net assets can sometimes imply better liquidity, but both are substantial Vanguard funds managed efficiently.

What are the top holdings in VDC?

The top five holdings in VDC are Walmart (WMT) at 13.34%, Costco (COST) at 11.99%, Coca-Cola (KO) at 9.63%, Procter & Gamble (PG) at 9.43%, and Philip Morris (PM) at 4.53%. Together, these stocks account for approximately 48.92% of the fund's total assets, showing a concentration in large consumer staples companies.

What are the top holdings in VPU?

The top five holdings in VPU are NextEra Energy (NEE) at 11.73%, Southern Company (SO) at 6.78%, Duke Energy (DUK) at 6.39%, Constellation Energy (CEG) at 5.86%, and American Electric Power (AEP) at 4.55%. These five companies make up 35.31% of the fund's assets, indicating less concentration than VDC but still significant top-holding weight.

How do the dividend yields compare?

VPU (Utilities Vanguard) offers a dividend yield of 2.91%, while VDC (Consumer Staples Vanguard ETF) offers a yield of 2.15%. VPU has a moderate yield, and VDC provides a lower but still present yield. Dividend payments vary and are not guaranteed, depending on the performance and policies of the underlying companies.

How does interest rate sensitivity affect VPU?

Utilities are often sensitive to interest rate changes because they are capital-intensive businesses that borrow heavily to fund infrastructure projects. Rising interest rates can increase borrowing costs and make fixed-income alternatives more attractive relative to utility stocks, potentially impacting VPU performance despite its defensive nature.

Is there overlap in the top holdings of VDC and VPU?

There is no overlap among the listed top-10 holdings for VDC and VPU. VDC features consumer staples companies like Walmart and Costco, while VPU features utility companies like NextEra Energy and Southern Company. This indicates the funds target distinct areas of the economy with no shared top positions.

What index do these funds track?

The specific index tracked by both VDC and VPU is not available in the provided data. Investors should note that while these are Vanguard ETFs designed to track specific sectors, the exact index composition and methodology are not specified in the current figures, limiting precise transparency.

What should beginners check before comparing VDC and VPU?

Beginners should verify data like expense ratios (both 0.09%), net assets ($7.8bn for VDC, $8.0bn for VPU), and yield figures (2.15% vs 2.91%). Checking inception dates (both Jan 26, 2004) confirms both are long-established funds. Always review current holdings for concentration risks before drawing investment conclusions.

What disclaimer applies to this ETF comparison?

This comparison is for educational purposes only and does not constitute financial advice. Market data, yields, and holdings are based on sources fetched on September 22, 2026, and are subject to change. Investors should conduct their own research or consult a qualified financial advisor before making any investment decisions.

VDC vs VPU

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

VDC vs VPU compares Vanguard Consumer Staples and Utilities funds by fees, holdings, dividends, and market tracking. Both offer a 0.09% expense ratio but differ in sector exposure. Educational content, not financial advice.

VDC vs VPU compares Vanguard Consumer Staples and Utilities funds by fees, holdings, dividends, and market tracking. Both offer a 0.09% expense ratio but differ in sector exposure. Educational content...

Fund Snapshot

Key Fund Metrics

VDC

Metric

VPU

0.09%

Expense Ratio

0.09%

2.15%

Dividend Yield

2.91%

$7.76B

Net Assets

$8.02B

108

Holdings

75

Jan 26, 2004

Inception Date

Jan 26, 2004

–

Index Tracked

–

Consumer Defensive

Fund Category

Utilities

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

VDC

Pros

VDC offers defensive exposure to essential consumer goods with a low 0.09% expense ratio and $7.8 billion in net assets.
The fund provides broad access to stable companies like Walmart and Costco, which together account for over 25% of holdings.
VDC has been in existence since January 2004, providing a long track record for investors seeking consumer staples exposure.

Considerations

The fund has high concentration risk, with the top five holdings comprising approximately 48.92% of total assets.
Current dividend yield of 2.15% is moderate compared to other fixed-income or utility-focused options.
Sector weightings are not available, making it difficult to assess precise diversification across sub-industries.

VPU

Pros

VPU provides targeted exposure to utilities, a sector often seen as income-generating and defensive, with a 2.91% dividend yield.
Like VDC, VPU benefits from Vanguard's low-cost structure, charging only 0.09% in expenses on $8.0 billion in assets.
The fund tracks a sector with established giants such as NextEra Energy and Southern Company, offering stability to investors.

Considerations

Top five holdings represent 35.31% of assets, indicating significant concentration within the utilities sector.
As with its counterpart, specific sector weights are not available, limiting transparency on further sub-sector distribution.
Utilities can be sensitive to interest rate changes, potentially affecting performance despite the fund's low cost and established history.

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