At a glance
VCR charges 0.09% a year, below the 0.39% average of the 8 funds most like it (the 3rd cheapest of 9). It has $6.63B in assets, the 2nd largest of that group; it paid 0.78% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −2.6% with distributions reinvested (S&P 500: +11.5%), 5th of those 9 funds; over three years it returned +16.3% a year. At its worst it fell 35.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 27 months after the low. Its ten largest positions make up 56.1% of the fund, out of 277 in all.
The short version
Vanguard Consumer Discretionary ETF (VCR) tracks the MSCI US Investable Market Index (IMI)/Consumer Discretionary 25/50. As of August 31, 2026, it held 277 US retailers, carmakers, restaurant chains and travel companies of all sizes. Its expense ratio (the yearly fee) of 0.09% is well below the 0.39% average of similar funds. The tradeoff is concentration: on that date, Amazon made up 22% of assets and Tesla 15.4%.
Price history
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VCR -2.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| VCR official prospectus, to Dec 31, 2024 | — | +24.39% | — | +15.95% | +13.79% | — |
| VCR price data to Oct 27, 2026 | -1.6% | -2.6% | +16.3% | +3.8% | — | +12.4% |
- Over the year to Oct 27, 2026, VCR returned -2.6%, 5th of 9 among similar funds.
- Its 5-year annualized return was +3.8%.
- Its worst full calendar year was 2022 (-35.1%); its best was 2023 (+40.4%).
- The deepest fall in its price history was 39.2% (Nov 19, 2021 to Dec 28, 2022), recovered by Nov 6, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.6% | — |
| 2025 | +5.8% | — |
| 2024 | +24.3% | +24.39% |
| 2023 | +40.4% | +40.40% |
| 2022 | -35.1% | -35.18% |
| 2021 | +24.9% | +24.88% |
| 2020 | — | +48.22% |
| 2019 | — | +27.55% |
| 2018 | — | -2.26% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Jun 2, 2020 |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 32.9% over that stretch · deepest drop along the way 35.9%, back to its old high 27.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.2500 | |
| 2025 | $2.9100 | +4.3% |
| 2024 | $2.7900 | +9.4% |
| 2023 | $2.5500 | +19.7% |
| 2022 | $2.1300 | -21.4% |
| 2021 | $2.7100 |
What's inside
As of Aug 31, 2026, the fund held 277 securities; the ten largest made up 56.12% of assets.
| Holding | Weight | |
|---|---|---|
| Amazon.com Inc | 21.98% | |
| Tesla Inc | 15.43% | |
| Home Depot Inc | 4.88% | |
| McDonald's Corp | 2.82% | |
| Booking Holdings Inc | 2.43% | |
| TJX Cos Inc | 2.25% | |
| Starbucks Corp | 1.84% | |
| Lowe's Cos Inc | 1.74% | |
| DoorDash Inc | 1.39% | |
| MercadoLibre Inc | 1.37% | |
| General Motors Co | 1.25% | |
| Airbnb Inc | 1.23% | |
| Marriott International Inc/MD | 1.20% | |
| O'Reilly Automotive Inc | 1.16% | |
| Ross Stores Inc | 1.15% |
By country
United States 99.9%By asset type
Stocks 99.9%By sector
Sectors of the companies held, for the 69.8% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $147.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.12%, -1.26%, +0.02%.
How it works
VCR is the exchange-traded share class of Vanguard Consumer Discretionary Index Fund. It tracks the MSCI US Investable Market Index (IMI)/Consumer Discretionary 25/50. That index holds large, mid-size and small U.S. companies that the Global Industry Classification Standard (GICS) places in the consumer discretionary sector. GICS is a widely used system for sorting companies into sectors. This sector holds the businesses most sensitive to economic cycles: makers of cars, household durables, apparel and leisure equipment, plus hotels, restaurants, media companies and retailers.
The fund tries to copy the index by owning all, or nearly all, of its stocks in about the same proportions. Under normal conditions, at least 80% of net assets must be in index stocks. Bigger companies carry bigger weights. The "25/50" in the index name refers to a capping rule that limits how heavy the largest companies can get. Even so, as of August 31, 2026, the fund held 277 stocks. Amazon made up 22.0%, Tesla 15.4% and Home Depot 4.9%, and the top 10 together made up 56.1%.
The prospectus calls the fund "nondiversified" under the Investment Company Act of 1940. That means it can put more of its money in a few companies than a diversified fund could. Holdings change slowly: portfolio turnover, the share of the portfolio replaced over a year, was 6%. Cash was about 0.21% of assets.
What it really costs
- VCR charges 0.09% a year, versus an average of 0.39% for the similar funds below (3rd of 9, cheapest first).
- Of that, 0.08% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $9 in the first year and $115 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| VCR | $9 | $29 | $51 | $115 |
In a retirement portfolio
It is a single, economically sensitive sector fund, and two stocks make up more than a third of it, so it works better as a smaller add-on than as a foundation.
VCR could add exposure to U.S. consumer spending, but it swings hard with the economy. In the 2022 bear market it fell 35.9% between January 3 and June 16, 2022. It did not regain that peak until September 24, 2024. Its deepest drop was 39.2%, from November 2021 to December 2022, and it took 22.3 months to recover from the low. Our price record starts in June 2020, so it does not show 2008 or the COVID crash. Anyone forced to sell in a year like 2022 would have locked in steep losses.
Income is small: the trailing 12-month yield was 0.78% as of October 27, 2026, paid quarterly. Costs are low. In the SEC's standard $10,000 example, fees come to $9 after one year. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Long-term investors who want cheap exposure to US consumer spending: in the SEC's standard example, the 0.09% fee costs $115 over 10 years on $10,000.
- Investors who want consumer exposure led by Amazon and Tesla, which made up 22% and 15.4% of assets as of August 31, 2026.
- Investors who want small and mid-size consumer companies alongside the giants; the fund held 277 holdings as of August 31, 2026.
Look elsewhere if
- Retirees who need income: the trailing yield was 0.78% as of October 27, 2026, with dividends paid quarterly.
- Investors who want broad diversification: the fund is legally nondiversified, and its top 10 holdings made up 56.12% of assets as of August 31, 2026.
- Anyone who can't stomach big drops: the fund fell 39.2% from November 2021 to December 2022 and did not recover until November 2024.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| VCR this fund | — | 0.09% | $6.63B | -2.6% | +16.3% |
| FDIS Fidelity MSCI Consumer Discretionary Index … | 95% | 0.084% | $1.68B | -2.3% | +16.4% |
| XLY Consumer Discretionary Select Sector SPDR F… | 77% | 0.08% | $22.59B | -0.5% | -8.0% |
| IYC iShares U.S. Consumer Discretionary ETF | 65% | 0.39% | $1.19B | -4.2% | +17.0% |
| RXI iShares Global Consumer Discretionary ETF | 60% | 0.41% | $251.7M | -7.8% | +13.3% |
| RTH VanEck Retail ETF | 34% | 0.35% | $248.4M | +7.1% | +18.6% |
| ONLN ProShares Online Retail ETF | 26% | 0.58% | $60.9M | -7.6% | +25.6% |
| CLIX ProShares Long Online/Short Stores ETF | 26% | 0.65% | $6.2M | -3.4% | +20.8% |
Questions investors ask
How much does VCR cost per year?
VCR charges 0.09% a year, including a 0.08% management fee, according to its prospectus filed December 19, 2025. The SEC's standard example assumes $10,000 invested, a 5% annual return and a sale at the end of each period. On that basis, total costs come to $9 after one year, $51 after five years and $115 after 10 years. The average expense ratio among similar funds was 0.39%.
What's the difference between VCR and FDIS?
Very little in practice. Based on the latest N-PORT reports, Fidelity MSCI Consumer Discretionary Index ETF (FDIS) shared 95% of its holdings with VCR. FDIS charges 0.084% a year, compared with 0.09% for VCR. Returns were close too. As of October 27, 2026, FDIS returned -2.3% over one year and 16.4% a year over three years, against -2.6% and 16.3% for VCR. VCR is larger. It had $6.6 billion in net assets across all share classes as of August 31, 2026, while FDIS had $1.7 billion as of July 31, 2026.
Is VCR good for retirement income?
Not as a source of income. VCR's trailing yield was 0.78% as of October 27, 2026, with dividends paid quarterly. The fund aims to grow with consumer companies such as Amazon, Tesla and Home Depot, not to pay out cash. It also swings hard. Its strongest quarter was a 37.76% gain in the quarter ending June 30, 2020. Its worst was a 25.28% loss in the quarter ending June 30, 2022. Retirees may see it as a small growth holding rather than a steady income source.
Why does VCR hold so much Amazon and Tesla?
Because it copies its index. VCR holds each stock in about the same proportion as its weight in the MSCI US Investable Market Index (IMI)/Consumer Discretionary 25/50. As of August 31, 2026, that meant Amazon at 22% of assets and Tesla at 15.4%. Home Depot followed at 4.9% and McDonald's at 2.8%. The fund is classified as nondiversified under the Investment Company Act of 1940. That means a few stocks can drive much of its return.
How has VCR performed over 10 years?
VCR returned 13.79% a year on average over the 10 years through December 31, 2024, according to its prospectus. It returned 15.95% a year over five years and 24.39% in 2024. Results since then have been weaker. Based on share prices, it returned 3.8% a year over the five years to October 27, 2026. It gained 5.76% in 2025 and was down 1.62% in the year to date through October 27, 2026. It also lost 35.18% in 2022, so its gains have come with large swings.