VDC vs. FTXG: Which Defensive ETF Is the Better Buy?
VDC's broad defensive portfolio delivered higher returns over the last year, while FTXG's concentrated food-focused fund carries a higher dividend yield.
Overview
Comparing the Vanguard Consumer Staples ETF (NYSEMKT:VDC) with the First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG) highlights a classic trade-off: broad sector diversification at a low cost versus concentrated industry specialization.
Both funds invest in "non-discretionary" consumer companies -- the businesses people buy groceries, household goods, and personal care products from, no matter what the economy is doing. But while VDC casts a wide net across the entire consumer staples sector, FTXG focuses specifically on food and beverage companies.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.