This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE! Ratings: Top-Rated Vanguard ETFs

Vanguard, the No. 2 U.S. mutual fund manager with $747.7 billion under management in open-end funds we rate, doesn't have nearly the same presence in exchange traded funds. But with some $15.4 billion in rated ETF assets, it's still a big player in this much smaller but fast-growing market.

Each month Ratings updates its risk-adjusted performance ratings on approximately 800 closed end funds and exchange traded funds. The Top 200 list is compiled monthly. As of Oct. 31, Vanguard had 12 on the list. Of the 23 Vanguard ETFs we rate, 15 are rated buy with investment grades of A+, A, A-, B+, B or B- and eight are rated hold, which corresponds to investment grades of C+, C, & C-.

As a group, the firm's income funds get the highest marks, with Vanguard Telecom Services ETF (VOX) and Vanguard Consumer Discretionary ETF (VCR), in particular, posting impressive performances recently.

It is no surprise that investors, seeing renewed interest in media buyouts and banking on a strong holiday shopping season, have bid up stocks held by Vanguard Consumer Discretionary above those held by another income fund, Vanguard Consumer Staples ETF (VDC ).

In the three-month period noted below, Consumer Staples' largest holding, Procter & Gamble (PG) climbed a respectable 11.9%, but the largest holding of Consumer Discretionary, Time Warner (TWX), nearly doubled that performance at 22.1%.

Vanguard European Stock ETF (VGK), which tracks the MSCI International Europe Index, is highly sensitive to the banking and oil and gas industries with stock holding concentrations of 18.4% and 11.0%, respectively. On a country basis, 31.7% of the holdings are British, 14.0% French and 10.6% Swiss, followed by 10.3% German.

Vanguard REIT Index ETF (VNQ) has also performed very well the past three months, six months and one year, despite a marked slowdown in the housing sector. Our models show that real estate investment trusts in general seem to be continuing to profit from the income generating power of their properties, which are primarily in commercial, rather than residential, real estate.

Investors who are concerned about a possible slowdown in the U.S. economy next year may want to consider the Vanguard Utilities ETF (VPU). The dividend yield offered by this sector makes it a good defensive play.

In the Vanguard
How the fund titan's ETF holdings shape up.
Click here for larger image.
Source: Ratings

Sam Patel, CFA, is the manager of mutual fund Research for the Ratings.

In keeping with TSC's Investment Policy, employees of Ratings with access to pre-publication ratings data must pre-clear any potential trade through the legal department, and are prohibited from trading any security that is the subject of an unpublished rating revision until the second business day after the rating is published.

While Patel cannot provide investment advice or recommendations, he appreciates your feedback; click here to send him an email.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs