Vanguard Consumer Staples ETF

VDC

Market cap $7.32B

Certain AI stocks have been going through an ugly correction as Wall Street sentiment turns cold.

With stocks sliding, volatility spiking and bubble concerns mounting, investors need a defensive game plan. These ETFs can help you navigate the turbulence.

Vanguard Consumer Staples Index ETF is upgraded to a "Buy," driven by improved valuations and potential macro catalysts in 2026. VDC underperformed the S&P 500 year-to-date but now trades at a more attractive price-to-earnings ratio relative to the broader market. The fund offers stability with a low historical standard deviation and a 2.25% dividend yield, though technical momentum remains mixed.

Walmart Inc. (WMT) CEO Doug McMillon will retire at the end of January after nearly 12 years leading the nation's largest retailer, according to a company filing released Friday. John Furner, currently Walmart's U.S. CEO, will take over as head of the company on February 1, according to the filing.

Vanguard's VDC manages a much larger asset pool and has a longer track record than FSTA. Both ETFs deliver nearly identical sector exposure, performance, and dividend yields.

With U.S. holiday sales set to surpass $1 trillion, ETFs like RTH, EBIZ, and VDC could shine as retail spending surges.

Consumer staples ETFs, usually the quiet corner of the market, are suddenly in the spotlight. The $48.7 billion acquisition of Kenvue Inc. (NYSE:KVUE) by Kimberly-Clark Corp (NASDAQ:KMB) has stirred renewed interest in the sector, setting up a potential reshuffling of weightings across several big-name ETFs.

As market optimism builds, investors may want to fortify portfolios with defensive ETFs like VTV, XLP and QUAL to weather potential volatility.

Investors seeking divdends might be happier with the Consumer Staples Select Sector SPDR Fund. The Vanguard Consumer Staples ETF has a larger number of holdings in its portfolio.

The Vanguard Consumer Staples ETF and the iShares U.S. Consumer Staples ETF target U.S. consumer staples stocks. Vanguard Consumer Staples ETF offers a lower expense ratio.