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VPU - ETF AI Analysis
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Vanguard Utilities ETF (VPU)
Rating:68Neutral
Price Target:―
Positive Factors
Strong Top Holdings
Several key holdings, such as Constellation Energy and Vistra Energy, have shown strong year-to-date performance, supporting the ETF’s overall returns.
Low Expense Ratio
The ETF has a very low expense ratio compared to industry averages, making it cost-effective for investors.
Stable Sector Focus
The fund’s heavy exposure to utilities, a traditionally stable sector, provides a defensive option during market volatility.
Negative Factors
High Sector Concentration
Nearly all of the ETF’s assets are concentrated in the utilities sector, limiting diversification and increasing sensitivity to sector-specific risks.
Limited Geographic Exposure
The ETF is almost entirely focused on U.S. companies, offering little diversification across global markets.
Mixed Holding Performance
While some holdings have performed well, others like Sempra Energy and Dominion Energy have shown weaker year-to-date returns, which may drag on overall performance.
VPU vs. SPDR S&P 500 ETF (SPY)
AUM7.82B
RegionNorth America
Expense Ratio0.09%
Beta0.32
IssuerVanguard
Inception DateJan 26, 2004
Dividend Yield2.72%
Asset ClassEquity
Index TrackedMSCI US IMI 25/50 Utilities
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume226,909
30 Day Avg. Volume181,545
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
212.27Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering68
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
VPU Summary
The Vanguard Utilities ETF (VPU) is an investment fund that focuses on the utilities sector, which includes companies providing essential services like electricity, water, and natural gas. It follows the MSCI US IMI 25/50 Utilities index and holds well-known companies such as NextEra Energy and Duke Energy. This ETF is a good choice for investors seeking stability and steady dividends, as utilities are often considered defensive investments that perform well in various economic conditions. However, new investors should be aware that the fund is heavily concentrated in the utilities sector, meaning its performance is tied closely to the health of this industry.
How much will it cost me?The Vanguard Utilities ETF (VPU) 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’s a passively managed fund that tracks an index, keeping costs down for investors.
What would affect this ETF?The Vanguard Utilities ETF (VPU) could benefit from increased demand for renewable energy and infrastructure upgrades, as many of its top holdings are investing in sustainable energy solutions. However, rising interest rates or regulatory changes affecting utility companies could negatively impact their profitability and dividend payouts, which are key attractions for investors in this sector.
VPU Top 10 Holdings
The Vanguard Utilities ETF (VPU) leans heavily into the stability of the utilities sector, with names like NextEra Energy and Constellation Energy driving its performance. NextEra Energy shows mixed signals, with solid growth plans but hints of bearish momentum, while Constellation Energy is rising steadily, buoyed by its focus on nuclear energy. On the flip side, Southern Co and Duke Energy are lagging, weighed down by cash flow challenges and bearish trends. With nearly all holdings rooted in U.S. utilities, the fund offers a concentrated play on essential services, blending defensive appeal with modest growth potential.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| NextEra Energy | 11.45% | $1.18B | $166.17B | 9.44% | 71 Outperform | |
| Constellation Energy Corporation | 7.34% | $758.12M | $112.84B | 57.24% | 68 Neutral | |
| Duke Energy | 6.21% | $641.90M | $90.82B | 7.18% | 70 Outperform | |
| Southern Co | 6.21% | $641.44M | $95.12B | 3.88% | 68 Neutral | |
| American Electric Power | 4.27% | $440.85M | $61.50B | 24.66% | 69 Neutral | |
| Sempra Energy | 3.98% | $411.61M | $57.88B | 0.82% | 61 Neutral | |
| Vistra Energy | 3.91% | $403.62M | $54.78B | 12.77% | 65 Neutral | |
| Dominion Energy | 3.45% | $356.61M | $49.65B | 8.13% | 63 Neutral | |
| Xcel Energy | 3.13% | $323.43M | $43.78B | 8.50% | 61 Neutral | |
| Exelon | 3.07% | $316.96M | $43.91B | 15.83% | 67 Neutral |
VPU Technical Analysis
Negative
―
Price Trends
190.65
Negative
187.67
Negative
179.13
Positive
Market Momentum
-1.61
Negative
45.39
Neutral
43.14
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VPU, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 186.74, equal to the 50-day MA of 190.65, and equal to the 200-day MA of 179.13, indicating a neutral trend. The MACD of -1.61 indicates Negative momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 43.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VPU.
VPU Peer Comparison
Comparison Results
Performance Comparison
VPU
Vanguard Utilities ETF
185.74
25.64
16.01%
XLRE
Real Estate Select Sector SPDR Fund
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FUTY
Fidelity MSCI Utilities Index ETF
―
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FXU
First Trust Utilities AlphaDEX Fund
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IDU
iShares U.S. Utilities ETF
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UTES
Virtus Reaves Utilities ETF
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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.
Disclaimer
This 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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