Vanguard Consumer Staples ETF (VDC)
PG Stock Weight: 12.6 %
The Vanguard Consumer Staples ETF (VDC) is the best ETF to own if you believe PG stock will rise in 2014.
Procter & Gamble stock represents the largest of 111 holdings in VDC’s $1.9 billion in total net assets. With a median market cap of $74 billion, it’s almost exclusively invested in large-cap US consumer staples. Its top 10 holdings account for 61.4% of its portfolio, making it a very concentrated bet. The VDC has outperformed PG stock in four out of the last five years, which has led to a four-star rating from Morningstar.
Another great reason to own this ETF is its international exposure. The VDC holds an entire portfolio of U.S. companies that all generate significant business outside North America, so you’re essentially buying a global ETF for just 0.14% annually. At the end of the day you get PG stock plus a bunch of other great consumer staples stocks like Coca-Cola (KO) and Colgate-Palmolive (CL) for next to nothing, an SEC yield of 2.4% and performance to boot.
What more can you ask for?