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VPU - ETF AI Analysis

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VPU

Vanguard Utilities ETF (VPU)

Rating:67Neutral
Price Target:
VPU, the Vanguard Utilities ETF, has a solid overall rating that reflects a portfolio of generally stable, income-oriented utility companies with some growth potential. Strong holdings like NextEra Energy and Duke Energy support the fund’s quality through robust earnings, strategic growth plans, and positive corporate developments, though many of these names also show bearish technical trends and leverage or cash flow concerns. Weaker spots such as Sempra Energy and Xcel Energy, which face higher debt, cash flow challenges, and regulatory or valuation risks, highlight that the fund is concentrated in a single, capital-intensive sector where financial and technical pressures can weigh on performance.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and over the past few months, indicating positive recent momentum in its utility holdings.
Leading Utility Companies in Top Holdings
Several of the largest positions, such as NextEra Energy, American Electric Power, and Entergy, have delivered strong year-to-date results, helping support the fund’s overall performance.
Low Expense Ratio
The fund’s very low management fee means less of your return is eaten up by costs compared with many other ETFs.
Negative Factors
Sector Concentration in Utilities
Almost all of the portfolio is invested in utilities, which reduces diversification and ties performance closely to the fortunes of this single sector.
Heavy U.S.-Only Exposure
With nearly all assets in U.S. companies, the ETF offers little geographic diversification and is highly sensitive to the U.S. economy and regulation.
Notable Lagging Holdings
Some sizable positions, such as Constellation Energy and Vistra, have shown weak year-to-date performance, which can drag on the fund if this trend continues.

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

VPU Summary

Vanguard Utilities ETF (VPU) is a fund that follows the MSCI US IMI 25/50 Utilities Index and focuses on U.S. utility companies that provide everyday essentials like electricity, water, and natural gas. It holds well-known names such as NextEra Energy and Duke Energy. Investors might consider VPU for its potential for steady dividends and diversification within the defensive utilities sector, which often holds up better when the economy slows. However, because it is heavily concentrated in utilities, its value can still go up and down and may lag the broader stock market when other sectors are doing well.
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

Vanguard Utilities ETF leans heavily on a handful of big U.S. power players, with NextEra Energy setting the tone: it’s up for the year but has been losing steam lately, so its recent wobble can sway the fund. Southern, Duke, and American Electric Power are more like steady workhorses—rising over the longer stretch but not sprinting. On the flip side, Constellation and Vistra have been lagging, acting as a bit of a drag. Overall, this is a pure-play U.S. utilities story, with little diversification beyond the power and energy grid.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
NextEra Energy12.53%$1.40B$177.50B15.28%
71
Outperform
Southern Co6.62%$738.14M$105.99B4.05%
68
Neutral
Duke Energy6.26%$698.42M$97.48B7.47%
70
Outperform
Constellation Energy Corporation5.99%$668.32M$87.52B-17.07%
68
Neutral
American Electric Power4.55%$507.66M$69.93B26.08%
69
Neutral
Sempra Energy3.86%$430.39M$59.51B19.81%
61
Neutral
Dominion Energy3.42%$381.82M$58.73B19.42%
63
Neutral
Vistra Corp3.32%$370.75M$46.71B-15.81%
65
Neutral
Entergy3.27%$365.05M$50.59B34.48%
66
Neutral
Xcel Energy3.05%$340.16M$48.76B13.32%
61
Neutral

VPU Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
196.09
Negative
100DMA
195.68
Negative
200DMA
191.28
Positive
Market Momentum
MACD
-1.40
Negative
RSI
49.72
Neutral
STOCH
66.18
Neutral
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 191.99, equal to the 50-day MA of 196.09, and equal to the 200-day MA of 191.28, indicating a neutral trend. The MACD of -1.40 indicates Negative momentum. The RSI at 49.72 is Neutral, neither overbought nor oversold. The STOCH value of 66.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VPU.

VPU Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$8.44B0.09%
67
Neutral
$9.96B0.09%
71
Outperform
$7.91B0.08%
69
Neutral
$2.30B0.08%
67
Neutral
$1.39B0.38%
68
Neutral
$1.32B0.49%
65
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VPU
Vanguard Utilities ETF
192.89
22.43
13.16%
VDE
Vanguard Energy ETF
XLRE
Real Estate Select Sector SPDR Fund
FUTY
Fidelity MSCI Utilities Index ETF
IDU
iShares U.S. Utilities ETF
UTES
Virtus Reaves Utilities 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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