PEZ vs VCR

PEZDInvesco Dorsey Wright Consumer Cyclicals Momentum ETF

VCRBVanguard Consumer Discretionary ETF

In short

PEZ Most consumer discretionary funds own the sector by size. PEZ owns the trend: roughly 30 cyclical stocks picked and weighted by price momentum, reshuffled every quarter. Fee is 0.60% net of a waiver through August 31, 2028.

VCR Consumer discretionary, the whole aisle. VCR tracks roughly 300 US retailers, carmakers, restaurants and travel names across large, mid and small caps for 0.09% a year, instead of stopping at the S&P 500's handful of giants.

Stated mandate

PEZ The fund tracks an index designed to identify companies exhibiting relative strength, or momentum, within the consumer cyclicals segment.

VCR The fund passively tracks an index representing U.S. consumer discretionary stocks, seeking to approximate the index through full replication when possible and sampling when required.

Why people hold it

• PEZ The index ranks consumer cyclicals by relative strength, holds at least 30 of them, and reconstitutes every January, April, July and October, so fading names get cut on a schedule.nasdaqomx.com
• Weights come from each stock's momentum score, not its market cap, so the portfolio can reach well past the sector's handful of giants.nasdaqomx.com
• Listed since October 2006, it has run the same Dorsey Wright momentum rules on US consumer cyclicals through multiple consumer cycles. Not a recent launch chasing a theme.

• VCR Costs 0.09% a year against a category median near 0.35%. In sector funds, where everyone owns roughly the same giants, that fee gap is the part you control.
• The index reaches past mega-caps into mid and small cap US consumer stocks, so homebuilders, specialty retailers and restaurant chains ride along too.vanguard.commsci.com
• Plain mechanics: full replication of its MSCI index where possible, sampling only where it isn't, with quarterly distributions. Same recipe since the 2004 launch.
• A multi-billion-dollar fund and one of the stronger builds in the consumer discretionary group, with tracking that stays close to the index it names.

Worth knowing

• PEZ Cost sits above the category median: 0.60% net of a waiver through August 31, 2028, against a 0.97% gross ratio, versus 0.08% for XLY and 0.09% for VCR.
• One of the smaller and thinner-traded funds in its category, so the bid-ask spread is a real part of the cost of getting in and out.
• A full quarterly rebuild means heavy turnover and a roster that can look unrecognizable year to year; momentum rules can get whipsawed when sector leadership flips.nasdaqomx.com

• VCR Cap weighting rules the top: a few giants carry most of the basket despite about 300 names. Index rules cap any single issuer at 25%, which still leaves it top-heavy.msci.commsci.com 2
• One sector, and a cyclical one. These are the industries Vanguard describes as most sensitive to economic cycles, so the ride is bumpier than a total-market fund.vanguard.com
• XLY and FDIS come in a basis point lower at 0.08%. The cost race in this corner is now measured in rounding, not dollars.

Full PEZ profile⁠

Full VCR profile⁠