Vanguard Consumer Staples Fund earns an Above Average Process Pillar rating.Morningstar's algorithmically assigned Passive Process ratings are first formulated by comparing the historical efficacy of passive investments relative to active peers. This peer-level score is then adjusted based on the fund’s individual characteristics such as: its ability to diversify risk and represent the category’s opportunity set, while penalizing funds whose benchmark index could be hard to track. The fund's Process Pillar is rated as Above Average, because it sits in a passive-friendly Morningstar Category, although it has a moderately concentrated portfolio, however, it accurately represents the Consumer Defensive category's opportunity set. Passive investing has historically performed well in the Consumer Defensive category. Over the long term, passive funds have often outpaced their actively managed counterparts. Available data suggests that the fund should be able to efficiently track its benchmark index.The investment strategy as stated in the fund's prospectus is:The investment seeks to track the performance of the MSCI US Investable Market Index/Consumer Staples 25/50. The fund employs an indexing investment approach designed to track the performance of the index, an index made up of stocks of large, mid-size, and small U.S. companies within the consumer staples sector, as classified under the GICS. The Advisor attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. The fund is non-diversified.The portfolio has allocations in its top two sectors, consumer defensive and financial services, that are similar to the category. The sectors with low exposure compared with category peers are healthcare and industrials; however, the allocations are similar to the category. The portfolio is positioned across 106 holdings and is relatively concentrated. In particular, 63.6% of the strategy's assets are housed within the top 10 holdings, as opposed to the category’s 57.2% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 9% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position. by Morningstar Manager Research , Find the latest Vanguard Consumer Staples Index Fund ETF Shares (VDC) stock quote, history, news and other vital information to help you with your stock trading and investing., Vanguard Consumer Staples ETF (VDC) - Find objective, share price, performance, expense ratio, holding, and risk details..