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Yahoo
3 days ago
- Business
- Yahoo
Should You Invest in the Vanguard Energy ETF (VDE)?
Launched on 09/23/2004, the Vanguard Energy ETF (VDE) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Broad segment of the equity market. An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors. Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 16, placing it in bottom 0%. The fund is sponsored by Vanguard. It has amassed assets over $6.78 billion, making it one of the largest ETFs attempting to match the performance of the Energy - Broad segment of the equity market. VDE seeks to match the performance of the MSCI US Investable Market Energy 25/50 Index before fees and expenses. The MSCI US Investable Market Index (IMI)/Energy 25/50 is made up of stocks of large, mid-size, and small U.S. companies within the energy sector. Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same. Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 3.34%. It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation in the Energy sector--about 99.90% of the portfolio. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 24.48% of total assets, followed by Chevron Corp (CVX) and Conocophillips (COP). The top 10 holdings account for about 48.47% of total assets under management. So far this year, VDE has lost about -2.66%, and is down about -4.14% in the last one year (as of 06/09/2025). During this past 52-week period, the fund has traded between $105.87 and $136.78. The ETF has a beta of 0.76 and standard deviation of 26.25% for the trailing three-year period, making it a high risk choice in the space. With about 114 holdings, it effectively diversifies company-specific risk. Vanguard Energy ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VDE is an excellent option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well. IShares Global Energy ETF (IXC) tracks S&P Global 1200 Energy Sector Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. IShares Global Energy ETF has $1.69 billion in assets, Energy Select Sector SPDR ETF has $26.69 billion. IXC has an expense ratio of 0.41% and XLE charges 0.08%. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard Energy ETF (VDE): ETF Research Reports Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports iShares Global Energy ETF (IXC): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-06-2025
- Business
- Yahoo
Should You Invest in the Vanguard Industrials ETF (VIS)?
If you're interested in broad exposure to the Industrials - Broad segment of the equity market, look no further than the Vanguard Industrials ETF (VIS), a passively managed exchange traded fund launched on 09/23/2004. While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%. The fund is sponsored by Vanguard. It has amassed assets over $5.40 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. VIS seeks to match the performance of the MSCI US Investable Market Industrials 25/50 Index before fees and expenses. The MSCI US Investable Market Index (IMI)/Industrials 25/50 is made up of stocks of large, mid-size, and small U.S. companies within the industrials sector. Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same. Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 1.22%. While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation in the Industrials sector--about 99.90% of the portfolio. Looking at individual holdings, General Electric Co (GE) accounts for about 4.19% of total assets, followed by Rtx Corp (RTX) and Uber Technologies Inc (UBER). The ETF return is roughly 6.02% and it's up approximately 13.63% so far this year and in the past one year (as of 06/03/2025), respectively. VIS has traded between $220.04 and $279.70 during this last 52-week period. The ETF has a beta of 1.10 and standard deviation of 18.77% for the trailing three-year period, making it a medium risk choice in the space. With about 385 holdings, it effectively diversifies company-specific risk. Vanguard Industrials ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VIS is a great option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well. First Trust RBA American Industrial Renaissance ETF (AIRR) tracks Richard Bernstein Advisors American Industrial Renaissance Index and the Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. First Trust RBA American Industrial Renaissance ETF has $3.55 billion in assets, Industrial Select Sector SPDR ETF has $21.01 billion. AIRR has an expense ratio of 0.70% and XLI charges 0.08%. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard Industrials ETF (VIS): ETF Research Reports GE Aerospace (GE) : Free Stock Analysis Report Industrial Select Sector SPDR ETF (XLI): ETF Research Reports First Trust RBA American Industrial Renaissance ETF (AIRR): ETF Research Reports Uber Technologies, Inc. (UBER) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
