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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, has a solid overall rating, reflecting generally strong quality among its major energy holdings. Heavyweights like Exxon Mobil and Chevron support the fund’s standing through strong financial performance, robust cash generation, and strategic growth, while other key names such as ConocoPhillips and EOG Resources add further strength with healthy balance sheets and shareholder-friendly policies. The main risk is that the fund is highly concentrated in the energy sector, so it is more exposed to swings in oil and gas prices and industry-specific challenges.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year, helped by solid returns from many of its holdings.
Leading Energy Companies
Top positions like Exxon Mobil, Chevron, and other major energy firms have shown steady to strong performance, supporting the fund’s overall results.
Low Expense Ratio
The fund’s low annual fee means investors keep more of their returns compared with many higher-cost energy funds.
Negative Factors
Heavy Sector Concentration
With almost all assets in the energy sector, the ETF is highly sensitive to swings in oil and gas markets.
High Weight in a Few Stocks
A large share of the fund is concentrated in a small number of companies, increasing the impact if any of these stocks perform poorly.
Limited International Diversification
The portfolio is overwhelmingly invested in U.S. companies, offering little geographic diversification for investors seeking broader global exposure.

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

VDE Summary

Vanguard Energy ETF (VDE) is a fund that tracks 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 transporting energy. Someone might invest in VDE to bet on the long-term demand for energy and to add sector diversification to their 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

Vanguard Energy ETF is heavily anchored in U.S. oil and gas giants, with Exxon Mobil and Chevron acting as the twin engines of the fund—though both have been losing altitude lately, weighing on short-term performance despite solid longer-term trends. ConocoPhillips and EOG Resources are also in the mix, showing generally rising results over the year but choppy recent trading. On the brighter side, refiners like Marathon Petroleum and Valero Energy have been powering ahead, helping offset some of the drag. Overall, this is a U.S.-centric, energy-pure play with little diversification beyond traditional oil and gas.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Exxon Mobil21.52%$2.38B$640.11B41.61%
74
Outperform
Chevron13.43%$1.49B$384.34B24.76%
71
Outperform
Conocophillips5.48%$607.34M$144.72B25.70%
78
Outperform
Williams Co3.95%$437.18M$91.10B28.08%
76
Outperform
Valero Energy3.48%$385.20M$92.32B117.51%
69
Neutral
Marathon Petroleum3.36%$372.62M$92.20B82.28%
66
Neutral
EOG Resources3.09%$342.53M$76.70B22.21%
78
Outperform
Schlumberger3.09%$342.35M$71.27B34.00%
75
Outperform
Phillips 662.98%$329.97M$84.76B66.49%
73
Outperform
Kinder Morgan2.71%$300.46M$72.28B19.51%
68
Neutral

VDE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
159.71
Positive
100DMA
161.34
Positive
200DMA
146.01
Positive
Market Momentum
MACD
2.81
Negative
RSI
69.31
Neutral
STOCH
84.92
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 158.09, equal to the 50-day MA of 159.71, and equal to the 200-day MA of 146.01, indicating a bullish trend. The MACD of 2.81 indicates Negative momentum. The RSI at 69.31 is Neutral, neither overbought nor oversold. The STOCH value of 84.92 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
$10.16B0.09%
72
Outperform
$3.70B0.45%
71
Outperform
$3.55B0.35%
67
Neutral
$2.27B0.77%
73
Outperform
$2.00B0.08%
72
Outperform
$1.74B0.38%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VDE
Vanguard Energy ETF
168.23
47.98
39.90%
MLPX
Global X MLP & Energy Infrastructure ETF
XOP
SPDR S&P Oil & Gas Exploration & Production ETF
MLPA
Global X MLP ETF
FENY
Fidelity MSCI Energy Index ETF
IYE
iShares U.S. Energy ETF
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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