(VCR) Vanguard Consumer - Ratings and Ratios

The Vanguard Consumer Discretionary Index Fund ETF Shares (VCR) is designed to mirror the performance of its underlying index, which comprises stocks of U.S. companies across various market capitalizations within the consumer discretionary sector. This sector includes businesses that provide goods and services that are not essential, such as luxury items, leisure activities, and automobiles. The funds strategy is to invest in the constituent stocks of the index in proportion to their weighting, thereby aiming to replicate the indexs performance.

The consumer discretionary sector is sensitive to economic cycles, with demand for its goods and services typically increasing during periods of economic expansion and decreasing during downturns. The funds holdings are likely to include companies from various sub-sectors such as automobiles, hotels, restaurants, leisure, and retailing. As a non-diversified fund, VCR may have a higher concentration in specific stocks or sub-sectors, potentially increasing its volatility.

Analyzing the available technical data, VCRs current price is $353.47, slightly below its 20-day Simple Moving Average (SMA) of $355.53, indicating a potential short-term bearish trend. However, it is above its 50-day SMA of $333.48 and 200-day SMA of $348.88, suggesting a longer-term bullish trend. The Average True Range (ATR) of 6.45, or 1.82%, indicates moderate volatility. Given the 52-week high of $399.80 and low of $290.04, the fund has experienced significant price fluctuations, reflecting the sectors sensitivity to economic conditions.

With Assets Under Management (AUM) of $5.91 billion, VCR has a substantial presence in the market, contributing to its liquidity. The funds size and the liquidity of its underlying assets are important factors for investors, as they impact the ability to enter or exit positions without significantly affecting the price.

Forecasting VCRs future performance involves analyzing both its technical and fundamental data. Given its current technical indicators and the overall trend in the consumer discretionary sector, a potential short-term correction is possible if the price continues to be below the 20-day SMA. However, the longer-term trend remains bullish, supported by the funds position above its 50-day and 200-day SMAs. As the U.S. economy continues to evolve, consumer spending habits and the overall economic outlook will be crucial in determining the funds performance. If economic indicators remain positive, with steady consumer spending, VCR is likely to benefit, potentially pushing its price towards the 52-week high. Conversely, any signs of economic downturn could negatively impact the fund, driving its price lower.