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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 generally strong but not outstanding quality among its major utility holdings. Leaders like NextEra Energy and Duke Energy support the fund’s rating with robust earnings, strategic growth plans, and solid financial performance, though many top holdings also face issues such as high debt, cash flow challenges, and signs of bearish momentum. The main risk factor is the fund’s concentration in the utilities sector, where several companies share similar leverage and cash flow pressures that could weigh on returns during tougher market or regulatory conditions.
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

VPU is very much a U.S. utilities story, with a handful of big power players steering returns. NextEra Energy is still a heavyweight but has been treading water lately, so it’s no longer the clear engine of gains. Instead, American Electric Power, Entergy, and Xcel Energy have been rising and quietly pulling the fund forward, while Sempra adds a steady boost. On the flip side, Constellation Energy has been losing steam this year, acting as a noticeable drag in an otherwise defensive, dividend-focused utilities lineup.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
NextEra Energy12.15%$1.32B$198.69B43.27%
71
Outperform
Southern Co6.75%$732.11M$105.39B3.33%
68
Neutral
Duke Energy6.47%$701.44M$99.04B5.32%
70
Outperform
Constellation Energy Corporation5.46%$592.48M$113.59B40.19%
68
Neutral
American Electric Power4.45%$482.26M$73.23B26.16%
69
Neutral
Sempra Energy4.03%$436.88M$60.89B22.30%
61
Neutral
Dominion Energy3.35%$363.64M$55.01B16.30%
63
Neutral
Vistra Corp3.24%$350.87M$55.64B28.51%
65
Neutral
Entergy3.19%$345.67M$52.02B33.32%
66
Neutral
Xcel Energy2.98%$323.71M$49.40B14.13%
61
Neutral

VPU Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
199.49
Negative
100DMA
192.72
Positive
200DMA
189.17
Positive
Market Momentum
MACD
0.05
Positive
RSI
46.86
Neutral
STOCH
74.00
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 199.60, equal to the 50-day MA of 199.49, and equal to the 200-day MA of 189.17, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 74.00 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
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$8.86B0.09%
67
Neutral
$9.97B0.09%
72
Outperform
$9.91B0.69%
72
Outperform
$2.42B0.08%
67
Neutral
$1.59B0.38%
68
Neutral
$1.54B0.49%
65
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VPU
Vanguard Utilities ETF
197.60
30.73
18.42%
VDE
Vanguard Energy ETF
AIRR
First Trust RBA American Industrial Renaissance ETF
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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