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VDE - ETF AI Analysis

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VDE

Vanguard Energy ETF (VDE)

Rating:72Outperform
Price Target:
VDE, the Vanguard Energy ETF, earns a solid overall rating largely because its biggest holdings like Exxon Mobil, Chevron, and ConocoPhillips show strong financial performance, healthy cash flows, and supportive earnings call commentary. These strengths are backed by other well-positioned energy names such as Schlumberger, EOG Resources, and Baker Hughes, though some holdings like Kinder Morgan and Valero face issues with weaker momentum or valuation concerns. The main risk is that the fund is heavily concentrated in the energy sector, so it is sensitive to swings in energy prices and industry-specific trends.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year, showing solid momentum in the energy sector.
Leading Energy Companies in Top Holdings
The largest positions, including major integrated oil and gas firms and refiners, have shown strong year-to-date performance, helping drive the fund’s returns.
Low Expense Ratio
The fund charges a low fee, which helps investors keep more of their returns over time.
Negative Factors
High Sector Concentration
With almost all assets in the energy sector, the ETF is heavily exposed to swings in oil and gas markets.
Limited Geographic Diversification
The portfolio is overwhelmingly invested in U.S. companies, offering little exposure to energy firms in other regions.
Short-Term Volatility
The recent weak one-month performance shows that the fund’s value can move sharply over short periods.

VDE vs. SPDR S&P 500 ETF (SPY)

VDE Summary

Vanguard Energy ETF (VDE) is a fund that follows the MSCI US IMI 25/50 Energy index, giving you broad exposure to U.S. energy companies. It mainly holds large oil and gas firms like Exxon Mobil and Chevron, along with other businesses involved in producing and moving energy. Someone might invest in VDE to bet on the long-term demand for energy and to add sector diversification to a stock portfolio. However, this ETF is heavily tied to the energy sector, so its price can swing a lot with oil and gas prices and changes in the global economy.
How much will it cost me?The Vanguard Energy ETF (VDE) has an expense ratio of 0.09%, meaning you’ll pay $0.90 per year for every $1,000 invested. This is lower than average because it is a passively managed fund that tracks an energy sector index, keeping costs down for investors.
What would affect this ETF?The Vanguard Energy ETF (VDE) could benefit from rising global energy demand, advancements in renewable energy technologies, and favorable oil and gas prices, which would support its top holdings like Exxon Mobil and Chevron. However, it may face challenges from regulatory changes targeting fossil fuels, geopolitical tensions affecting oil supply, or economic slowdowns reducing energy consumption. Its focus on U.S.-based energy companies makes it sensitive to domestic policies and market conditions.

VDE Top 10 Holdings

VDE is an all‑U.S. energy play, and the story starts with Exxon Mobil and Chevron, which dominate the portfolio and have been steady climbers over the past few months despite some recent softening, setting the overall tone for the fund. ConocoPhillips and EOG Resources add more punch on the exploration side, with rising performance that’s helped power returns. On the refining front, names like Valero and Marathon Petroleum have also been strong, while Schlumberger’s upbeat momentum in oil services gives the ETF an extra tailwind rather than a drag.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Exxon Mobil22.52%$3.00B$618.95B36.42%
74
Outperform
Chevron14.86%$1.98B$369.57B31.89%
71
Outperform
Conocophillips6.05%$806.60M$148.41B30.94%
78
Outperform
Williams Co3.36%$447.30M$88.27B20.03%
76
Outperform
EOG Resources2.99%$398.92M$71.32B16.72%
78
Outperform
Marathon Petroleum2.91%$387.80M$66.01B65.15%
66
Neutral
Valero Energy2.90%$387.17M$70.51B107.62%
69
Neutral
Phillips 662.79%$371.64M$65.30B55.13%
73
Outperform
Schlumberger2.59%$345.61M$84.29B61.96%
75
Outperform
Kinder Morgan2.54%$339.03M$70.62B14.33%
68
Neutral

VDE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
162.65
Positive
100DMA
148.59
Positive
200DMA
135.26
Positive
Market Momentum
MACD
0.62
Negative
RSI
62.93
Neutral
STOCH
96.92
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VDE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 162.86, equal to the 50-day MA of 162.65, and equal to the 200-day MA of 135.26, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 62.93 is Neutral, neither overbought nor oversold. The STOCH value of 96.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VDE.

VDE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$10.10B0.09%
72
Outperform
$3.35B0.35%
68
Neutral
$3.35B0.45%
71
Outperform
$1.99B0.08%
72
Outperform
$1.73B0.38%
73
Outperform
$1.15B0.63%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VDE
Vanguard Energy ETF
169.58
58.54
52.72%
XOP
SPDR S&P Oil & Gas Exploration & Production ETF
MLPX
Global X MLP & Energy Infrastructure ETF
FENY
Fidelity MSCI Energy Index ETF
IYE
iShares U.S. Energy ETF
FXN
First Trust Energy AlphaDEX Fund
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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