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

Last week's stock market sell-off was swift and brutal. Investors wasted no time reacting negatively to President Trump's "Liberation Day" tariffs and responses from countries like China.On April 3, the S&P 500 (SNPINDEX: ^GSPC) fell 4.8%, the worst decline for the S&P 500 since June 11, 2020. The Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 6%.However, investment management firm Vanguard's exchange-traded fund (ETF) that tracks the consumer staples sector -- the Vanguard Consumer Staples ETF (NYSEMKT: VDC) -- went up slightly on the day. The ETF also outperformed the major indexes the following day -- when the S&P 500 and Nasdaq fell another 5%.Year to date, the ETF is down just 0.3% compared to a 13.7% drop in the S&P 500 and a staggering 19.3% decline in the Nasdaq Composite, at the time of this writing. And with a mere 0.09% expense ratio and 2.4% dividend yield, the fund is a low-cost way to generate passive income without racking up high fees.Continue reading

Apr 8, 2025 - 13:45

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

Last week's stock market sell-off was swift and brutal. Investors wasted no time reacting negatively to President Trump's "Liberation Day" tariffs and responses from countries like China.

On April 3, the S&P 500 (SNPINDEX: ^GSPC) fell 4.8%, the worst decline for the S&P 500 since June 11, 2020. The Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 6%.However, investment management firm Vanguard's exchange-traded fund (ETF) that tracks the consumer staples sector -- the Vanguard Consumer Staples ETF (NYSEMKT: VDC) -- went up slightly on the day. The ETF also outperformed the major indexes the following day -- when the S&P 500 and Nasdaq fell another 5%.

Year to date, the ETF is down just 0.3% compared to a 13.7% drop in the S&P 500 and a staggering 19.3% decline in the Nasdaq Composite, at the time of this writing. And with a mere 0.09% expense ratio and 2.4% dividend yield, the fund is a low-cost way to generate passive income without racking up high fees.