VPU vs. VDC

Last updated Aug 2, 2026

VPU (Vanguard Utilities ETF) and VDC (Vanguard Consumer Staples ETF) are both exchange-traded funds - VPU is a Utilities Equities fund tracking the MSCI US Investable Market Utilities 25/50 Index, while VDC is a Consumer Staples Equities fund tracking the MSCI US Investable Market Consumer Staples 25/50 Index. Both are passively managed. Over the past 10 years, VPU returned 8.75%/yr vs 7.72%/yr for VDC. Their 0.60 correlation means they have sometimes moved together and sometimes differently. Both charge a 0.09% expense ratio.

Performance

VPU vs. VDC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Utilities ETF (VPU) and Vanguard Consumer Staples ETF (VDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VPU achieves a 4.72% return, which is significantly lower than VDC's 10.27% return. Over the past 10 years, VPU has outperformed VDC with an annualized return of 8.75%, while VDC has yielded a comparatively lower 7.72% annualized return.

VPU

• 1D: -0.71%
• 1M: -3.20%
• 6M: 3.07%
• YTD: 4.72%
• 1Y: 6.03%
• 3Y*: 13.39%
• 5Y*: 9.10%
• 10Y*: 8.75%
• ALL TIME*: 9.71%

VDC

• 1D: -0.41%
• 1M: -0.01%
• 6M: 2.65%
• YTD: 10.27%
• 1Y: 8.60%
• 3Y*: 7.73%
• 5Y*: 6.96%
• 10Y*: 7.72%
• ALL TIME*: 9.44%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VDC Vanguard Consumer Staples ETF	$33.48M	$33.44M	$37.93M
VPU Vanguard Utilities ETF	$43.24M	$41.48M	$43.21M

VPU vs. VDC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VPU Vanguard Utilities ETF	4.72%	16.46%	23.04%	-7.45%	1.06%	17.40%	-0.74%	24.89%	4.38%	12.44%
VDC Vanguard Consumer Staples ETF	10.27%	2.17%	13.30%	2.38%	-1.79%	17.64%	10.86%	26.11%	-7.79%	11.85%

Correlation

The correlation between VPU and VDC is 0.32, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.32
Correlation (3Y) Balances recent behavior with more history.	0.45
Correlation (5Y) Shows whether the relationship held over a longer period.	0.56
Correlation (10Y) Provides a long-term view across more market conditions.	0.57
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.60

Over the past year, the correlation between VPU and VDC has dropped to 0.32 - well below their long-term average of 0.60, suggesting their price drivers have been diverging.

VPU vs. VDC - Sectors Allocation Comparison

Sectors	VPU	VDC
Utilities	98.9%	-
Energy	0.5%	-
Industrials	0.2%	0.3%
Basic Materials	-	0.4%
Communication Services	-	-
Consumer Cyclical	-	1.1%
Consumer Defensive	-	97.1%
Financial Services	-	-
Healthcare	-	0.0%
Real Estate	-	-
Technology	-	0.5%

Return for Risk

VPU vs. VDC — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VPU

VPU Risk / Return Rank: 21
VPU Sharpe Ratio Rank: 21
VPU Sortino Ratio Rank: 19
VPU Omega Ratio Rank: 19
VPU Calmar Ratio Rank: 23
VPU Martin Ratio Rank: 21

VDC

VDC Risk / Return Rank: 27
VDC Sharpe Ratio Rank: 28
VDC Sortino Ratio Rank: 28
VDC Omega Ratio Rank: 26
VDC Calmar Ratio Rank: 30
VDC Martin Ratio Rank: 24

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VPU vs. VDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Utilities ETF (VPU) and Vanguard Consumer Staples ETF (VDC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VPU	VDC	Difference
Sharpe ratio: Return per unit of total volatility	0.41	0.65	-0.24
Sortino ratio: Return per unit of downside risk	0.66	1.04	-0.38
Omega ratio: Gain probability vs. loss probability	1.08	1.12	-0.04
Calmar ratio: Return relative to maximum drawdown	0.68	0.97	-0.29
Martin ratio: Return relative to average drawdown	1.40	1.82	-0.41

VPU vs. VDC - Sharpe Ratio Comparison

The current VPU Sharpe Ratio is 0.41, which is lower than the VDC Sharpe Ratio of 0.65. The chart below compares the historical Sharpe Ratios of VPU and VDC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VPU vs. VDC - Drawdown Comparison

The maximum VPU drawdown since its inception was -46.31%, which is greater than VDC's maximum drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for VPU and VDC.

Drawdown Indicators

	VPU	VDC	Difference
Max Drawdown Largest peak-to-trough decline	-46.31%	-34.24%	-12.07%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-9.28%	+0.38%
Max Drawdown (3Y) Largest decline over 3 years	-12.95%	-11.14%	-1.81%
Max Drawdown (5Y) Largest decline over 5 years	-25.15%	-16.55%	-8.60%
Max Drawdown (10Y) Largest decline over 10 years	-36.42%	-25.31%	-11.11%
Current Drawdown Current decline from peak	-5.88%	-4.61%	-1.27%
Average Drawdown Average peak-to-trough decline	-7.76%	-3.74%	-4.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.33%	4.95%	-0.62%

Volatility

VPU vs. VDC - Volatility Comparison

The current volatility for Vanguard Utilities ETF (VPU) is 4.41%, while Vanguard Consumer Staples ETF (VDC) has a volatility of 5.87%. This indicates that VPU experiences smaller price fluctuations and is considered to be less risky than VDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VPU	VDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.41%	5.87%	-1.46%
Volatility (6M) Calculated over the trailing 6-month period	11.79%	11.43%	+0.36%
Volatility (1Y) Calculated over the trailing 1-year period	14.72%	13.79%	+0.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.05%	13.44%	+3.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.16%	14.76%	+4.40%

VPU vs. VDC - Expense Ratio Comparison

Both VPU and VDC have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VPU vs. VDC - Dividend Comparison

VPU's dividend yield for the trailing twelve months is around 2.70%, more than VDC's 2.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDC Vanguard Consumer Staples ETF	2.08%	2.26%	2.33%	2.65%	2.37%	2.14%	2.50%	2.44%	2.78%	2.52%	2.39%	2.55%
VPU Vanguard Utilities ETF	2.70%	2.73%	3.02%	3.49%	2.98%	2.70%	3.17%	2.83%	3.23%	3.18%	3.19%	3.63%

Frequently Asked Questions

Can I hold both VPU and VDC in my portfolio?

VPU and VDC have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPU or VDC?

VDC has higher volatility (5.87%) compared to VPU (4.41%). In terms of maximum drawdown, VPU dropped -46.31% vs VDC's -34.24%.

Which ETF is better, VPU or VDC?

On 10-year performance, VPU leads with 8.75% vs 7.72% for VDC. Both ETFs have the same 0.09% expense ratio. On volatility, VPU has been the lower-risk option at 4.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VPU or VDC?

Over the 10-year period, VPU has performed better with a 8.75% return vs 7.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VPU or VDC?

VPU and VDC have the same expense ratio: 0.09% per year.

Which ETF pays a higher dividend yield, VPU or VDC?

VPU has the higher dividend yield at 2.70%, compared with 2.08% for VDC.

What is the main difference between VPU and VDC?

VPU is categorized as Utilities Equities, while VDC is Consumer Staples Equities. VPU tracks MSCI US Investable Market Utilities 25/50 Index, while VDC tracks MSCI US Investable Market Consumer Staples 25/50 Index.

Which has better risk-adjusted returns?

VDC currently has the higher Sharpe Ratio (0.65 vs 0.41), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.