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VPU - ETF AI Analysis
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Vanguard Utilities ETF (VPU)
Rating:66Neutral
Price Target:―
Positive Factors
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of their returns over time.
Large Asset Base
The ETF manages a sizable pool of assets, suggesting it is well-established and has attracted steady investor interest.
Several Strong Top Holdings
Many of the largest positions, including major utility companies, have shown generally positive performance this year, supporting the fund’s overall results.
Negative Factors
Sector Concentration in Utilities
Almost all of the portfolio is invested in utilities, which increases exposure to risks specific to that single sector.
Heavy U.S. Focus
The ETF is almost entirely invested in U.S. companies, offering very little geographic diversification.
Mixed Recent Performance
While the fund is modestly positive for the year, its recent three-month performance has been weak, and a few top holdings have lagged, which may weigh on short-term returns.
VPU vs. SPDR S&P 500 ETF (SPY)
AUM8.42B
RegionNorth America
Expense Ratio0.09%
Beta0.32
IssuerVanguard
Inception DateJan 26, 2004
Dividend Yield2.51%
Asset ClassEquity
Index TrackedMSCI US IMI 25/50 Utilities
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume299,888
30 Day Avg. Volume246,325
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
213.19Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering67
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
VPU Summary
Vanguard Utilities ETF (VPU) is a fund that follows the MSCI US IMI 25/50 Utilities Index, focusing mainly on U.S. utility companies that provide everyday essentials like electricity, water, and natural gas. Its holdings include well-known names such as NextEra Energy and Duke Energy. Investors might consider VPU if they want a more stable corner of the stock market, potential dividend income, and diversification away from fast-moving growth sectors. A key risk is that it is heavily concentrated in utility stocks, so its value can still go up and down with changes in interest rates and the broader market.
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
VPU is very much a U.S. utilities story, with a big chunk of its fate tied to giants like NextEra Energy, which has been rising and acting as a key engine for the fund. American Electric Power, Dominion, and Xcel are also helping keep returns on a steady, if unspectacular, upward path. On the flip side, Constellation Energy and Vistra have been lagging lately, acting as a bit of a headwind. With almost everything in regulated power and energy infrastructure, this ETF is highly concentrated in one defensive corner of the market.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| NextEra Energy | 11.26% | $1.11B | $195.35B | 37.82% | 71 Outperform | |
| Constellation Energy Corporation | 7.51% | $741.14M | $104.51B | -9.10% | 68 Neutral | |
| Southern Co | 6.28% | $619.15M | $104.55B | 10.95% | 68 Neutral | |
| Duke Energy | 6.21% | $612.08M | $99.70B | 14.87% | 70 Outperform | |
| American Electric Power | 4.20% | $414.12M | $70.28B | 27.60% | 69 Neutral | |
| Sempra Energy | 3.92% | $386.85M | $61.86B | 12.70% | 61 Neutral | |
| Vistra Corp | 3.72% | $367.08M | $58.11B | 2.28% | 65 Neutral | |
| Dominion Energy | 3.40% | $335.62M | $56.79B | 19.64% | 63 Neutral | |
| Xcel Energy | 2.97% | $293.35M | $48.26B | 18.92% | 61 Neutral | |
| Entergy | 2.81% | $277.09M | $46.92B | 27.37% | 66 Neutral |
VPU Technical Analysis
Positive
―
Price Trends
186.94
Positive
189.66
Positive
183.08
Positive
Market Momentum
2.31
Negative
77.00
Negative
94.35
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VPU, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 188.99, equal to the 50-day MA of 186.94, and equal to the 200-day MA of 183.08, indicating a bullish trend. The MACD of 2.31 indicates Negative momentum. The RSI at 77.00 is Negative, neither overbought nor oversold. The STOCH value of 94.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VPU.
VPU Peer Comparison
Comparison Results
Performance Comparison
VPU
Vanguard Utilities ETF
201.32
33.48
19.95%
VDE
Vanguard Energy ETF
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AIRR
First Trust RBA American Industrial Renaissance ETF
―
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FUTY
Fidelity MSCI Utilities Index ETF
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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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