VCR: Consumer Discretionary Sector Dashboard For September

Consumer services and durables/apparel subsectors are undervalued with strong quality scores, while autos/components appear overvalued and lower quality.

The Vanguard Consumer Discretionary ETF offers broad sector exposure with 277 holdings and a low 0.09% expense ratio. VCR is notably cheaper than XLY on valuation metrics, driven by greater small-cap exposure, and has slightly outperformed XLY long-term.

Seven stocks are cheaper than their peers in September.

This monthly article series offers a top-down analysis of the consumer discretionary sector based on value, quality, and momentum metrics. It may also help to analyze sector ETFs such as the Vanguard Consumer Discretionary ETF.

Fred Piard, PhD. is a quantitative analyst and IT professional with over 30 years of experience working in technology. He is the author of three books and has been investing in data-driven systematic strategies since 2010. Fred runs the investing group Quantitative Risk & Value where he shares a portfolio invested in quality dividend stocks, and companies at the forefront of tech innovation. Fred also supplies market risk indicators, a real estate strategy, a bond strategy, and an income strategy in closed-end funds.