XLP vs. VDC: Do Reduced Fees Outweigh the Benefits of Wider Exposure?
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Expense Ratios and Dividend Yields: XLP has a lower expense ratio and higher dividend yield compared to VDC, making it more appealing for cost- and income-focused investors.
Performance Comparison: While VDC outperformed XLP in five-year total returns, both funds experienced similar maximum drawdowns, indicating comparable risk levels.
Portfolio Composition: XLP is more concentrated with 36 stocks focused on consumer defensive companies, whereas VDC has a broader portfolio of 105 holdings, including a small allocation to consumer cyclical stocks.
Investment Considerations: Investors must weigh the benefits of VDC's diversification against XLP's lower fees and higher yield when choosing between the two funds.
Analyst Views on VDC
Wall Street analysts forecast VDC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VDC is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 224.580
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Current: 224.580
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
