Average Daily Volume
512.1K
Fund Overview
The Vanguard Energy ETF (VDE) is an exchange-traded fund that seeks to track the performance of the MSCI US Investable Market Energy 25/50 Index. This index includes large, mid, and small-cap U.S. stocks within the energy sector, covering industries such as oil, gas, and consumable fuels, as well as energy equipment and services. VDE provides investors with broad exposure to the U.S. energy market, making it a popular choice for those looking to invest in this sector. The fund is known for its low expense ratio, which is typical of Vanguard's offerings, and its diversified holdings across various energy sub-industries. VDE is suitable for investors seeking long-term growth potential through the energy sector, which can be influenced by factors such as oil prices, geopolitical events, and global energy demand.
- Asset Class
-
Equity
- Industry
-
Broad Energy
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 2.88 %
- Currency Hedged
-
No
- Portfolio Turnover
-
8 %
- Dividend Date
-
Why Invest in the VDE ETF?
Potential Benefits
- Provides diversified exposure to the U.S. energy sector, including oil, gas, and energy equipment companies.
- Low expense ratio compared to many other energy-focused ETFs, making it cost-effective for long-term investors.
- Offers liquidity due to its large asset base and high trading volume.
- Potential for capital appreciation during periods of rising energy prices or strong sector performance.
- Backed by Vanguard, a trusted name in low-cost index investing.
Potential Risks
- Sensitive to fluctuations in oil and gas prices, which can be volatile and influenced by geopolitical events.
- Concentration risk in the energy sector, which may underperform during market downturns or shifts to renewable energy.
- Regulatory risks, as changes in environmental policies could impact energy companies.
- Dividend payments may vary based on the profitability of energy companies, which can be cyclical.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+14.2%
|
+9.6%
|
+10.4%
|
-2.0%
|
-6.2%
|
-5.0%
|
+11.9%
|
+7.3%
|
-3.9%
|
+3.8%
|
-
|
-
|
| 2025 |
+1.9%
|
+2.4%
|
+3.2%
|
-13.7%
|
+2.0%
|
+5.1%
|
+2.8%
|
+3.6%
|
0.0%
|
-1.0%
|
+2.5%
|
-0.6%
|
| 2024 |
-0.8%
|
+3.2%
|
+10.5%
|
-1.0%
|
+0.2%
|
-1.6%
|
+2.4%
|
-2.5%
|
-3.1%
|
+1.0%
|
+8.5%
|
-8.8%
|
| 2023 |
+3.0%
|
-6.6%
|
-1.1%
|
+2.4%
|
-9.5%
|
+7.6%
|
+8.3%
|
+1.9%
|
+2.4%
|
-5.4%
|
-1.2%
|
-0.2%
|
| 2022 |
+17.5%
|
+7.5%
|
+10.0%
|
-1.7%
|
+15.2%
|
-17.1%
|
+10.6%
|
+3.2%
|
-9.4%
|
+24.0%
|
+1.3%
|
-3.9%
|
| 2021 |
+5.0%
|
+22.5%
|
+3.0%
|
+0.4%
|
+6.5%
|
+5.2%
|
-8.7%
|
-1.8%
|
+10.0%
|
+9.9%
|
-5.7%
|
+2.6%
|
| 2020 |
-11.8%
|
-14.9%
|
-36.6%
|
+32.2%
|
+1.7%
|
-0.9%
|
-4.2%
|
-0.6%
|
-14.7%
|
-3.5%
|
+28.0%
|
+5.3%
|
| 2019 |
+11.7%
|
+2.2%
|
+2.3%
|
-0.2%
|
-11.7%
|
+8.8%
|
-2.4%
|
-8.7%
|
+3.9%
|
-2.6%
|
+1.1%
|
+7.1%
|
| 2018 |
+3.2%
|
-10.7%
|
+2.0%
|
+9.7%
|
+3.6%
|
+0.7%
|
+1.1%
|
-3.0%
|
+2.6%
|
-12.1%
|
-2.8%
|
-13.4%
|
| 2017 |
-3.5%
|
-2.7%
|
-1.1%
|
-3.5%
|
-4.1%
|
-0.5%
|
+2.6%
|
-5.6%
|
+10.5%
|
-1.1%
|
+2.1%
|
+5.4%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
XOM
|
EXXON MOBIL CORP |
23.1 % |
|
CVX
|
CHEVRON CORP |
13.9 % |
|
COP
|
CONOCOPHILLIPS |
6.6 % |
|
EOG
|
EOG RESOURCES INC |
3.7 % |
|
WMB
|
WILLIAMS COMPANIES INC |
3.6 % |
|
OKE
|
ONEOK INC |
3.2 % |
|
SLB
|
SCHLUMBERGER LTD |
2.9 % |
|
KMI
|
KINDER MORGAN INC CLASS P |
2.8 % |
|
PSX
|
PHILLIPS 66 |
2.8 % |
|
LNG
|
CHENIERE ENERGY INC |
2.7 % |
Top 10 holdings shown, out of 113 total holdings.
Related ETFs: VDE vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
VDE seeks to track the performance of the MSCI US Investable Market Energy 25/50 Index, which includes U.S. stocks from the energy sector. The index is market-cap weighted, meaning larger companies have a greater influence on the fund's performance. VDE primarily holds common stocks of energy companies, including integrated oil and gas firms, exploration and production companies, and energy equipment providers. The fund is passively managed and rebalanced quarterly to align with the index's composition. This approach ensures low turnover and cost efficiency.
Frequently Asked Questions
What types of companies does VDE hold?
VDE invests in U.S. energy companies, including oil and gas producers, refiners, and energy equipment providers.
How does VDE compare to XLE?
VDE includes small and mid-cap energy stocks, while XLE focuses on large-cap companies. VDE also has a lower expense ratio.
Is VDE a good hedge against inflation?
Energy stocks can perform well during inflationary periods, but VDE's performance depends on broader sector trends and oil prices.
Does VDE pay dividends?
Yes, VDE pays dividends, but the yield can vary based on the profitability of energy companies.
Is VDE suitable for long-term investing?
Yes, VDE is designed for long-term investors seeking exposure to the energy sector, though it carries sector-specific risks.
Industry Overview
The Vanguard Energy ETF (VDE) provides exposure to the U.S. energy sector, which includes companies involved in oil, gas, and consumable fuels, as well as energy equipment and services. The energy sector is cyclical and heavily influenced by commodity prices, geopolitical events, and global demand. Investing in VDE allows investors to gain broad exposure to this sector, which can offer growth potential during periods of rising energy prices but may also face challenges during downturns or shifts toward renewable energy. The ETF is suitable for those looking to diversify their portfolio with energy stocks or hedge against inflation.
Alternative Comparison
Compared to its peers, such as the Energy Select Sector SPDR Fund (XLE) and the iShares U.S. Energy ETF (IYE), VDE offers broader exposure by including small and mid-cap energy stocks, whereas XLE and IYE focus more on large-cap companies. VDE also boasts a lower expense ratio than many competitors, making it an attractive option for cost-conscious investors. Unlike some leveraged or inverse energy ETFs (e.g., ERX), VDE provides straightforward, long-term exposure to the sector without the complexities of derivatives.
Issuer Overview
Vanguard is one of the largest and most reputable investment management companies, known for its low-cost index funds and ETFs. The firm is a pioneer in passive investing, offering a wide range of products designed to provide broad market exposure at minimal cost. Vanguard's ETFs are popular among both individual and institutional investors due to their transparency, low fees, and long-term performance.
Conclusion
The Vanguard Energy ETF (VDE) is a solid choice for investors seeking diversified exposure to the U.S. energy sector. Its low expense ratio, broad holdings, and passive management make it a cost-effective and efficient way to invest in energy stocks. However, investors should be aware of the sector's volatility and cyclical nature. VDE is best suited for those with a long-term perspective and a tolerance for market fluctuations.
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