Is the Vanguard Utilities ETF the Smartest Investment You Can Make Today?
AI expansion is leading to significant increases in electricity demand. Major tech companies are securing long-term power purchase agreements (PPAs) with utility providers to ensure access to energy.
VPU: AI Infrastructure Drive Capital Deployment And New PPAs
The Vanguard Utilities Index Fund ETF provides exposure to U.S. utilities, benefiting from surging electricity demand and robust sector momentum. Utility operators are well-positioned for growth, with major capital investment projects boosting the rate base and earnings potential. AI infrastructure expansion creates a bullish outlook with up to 15% upside potential for the VPU ETF.
Utilities ETF (VPU) Hits New 52-Week High
VPU hit a new 52-week high as investor demand for defensive plays boosts momentum in the utilities sector.
Why VPU Works For Utilities, But You Might Want More
Utilities sector suits passive investing due to low growth, regulation, and limited alpha from stock picking—making ETFs like VPU a viable choice. VPU offers better diversification than XLU, but sub-sector exposure remains concentrated in electric utilities, limiting exposure to renewables and water utilities. VPU provides stable 3% yields and reliable returns, with performance comparable to peers and resilience during market drawdowns.
Should You Invest in the Vanguard Utilities ETF (VPU)?
The Vanguard Utilities ETF (VPU) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Utilities - Broad segment of the equity market.
VPU: Utilities Have Much To Gain From The Growing AI Data Center Boom
VPU offers stable income and defensive exposure to the utilities sector, now benefiting from surging electricity demand driven by data centers and AI growth. Regulatory headwinds exist, but a positive shift in policy could be a major catalyst for utilities and VPU's growth prospects. VPU boasts a strong distribution yield and ultra-low fees, but has underperformed actively managed peers like UTES on total returns.
Should You Invest in the Vanguard Utilities ETF (VPU)?
If you're interested in broad exposure to the Utilities - Broad segment of the equity market, look no further than the Vanguard Utilities ETF (VPU), a passively managed exchange traded fund launched on 01/26/2004.
Want Decades of Passive Income? Buy This ETF and Hold It Forever.
British rock group Dire Straits had a monster hit back in the 1980s with their song Money for Nothing. While the instantly recognizable guitar riff was arguably the song's main appeal, its sentiment is attractive, too.
VPU: Utilities Poised To Generate Lofty Returns In 2025 And Beyond
Vanguard Utilities Index Fund ETF Shares is outperforming the S&P 500 due to robust electricity demand driven by vehicle electrification and AI-powered data centers. The utilities sector is poised for explosive growth, with significant capital investments from major companies like NextEra, Duke Energy, and Dominion Energy. VPU offers a diversified portfolio with strong dividend yields and low expense ratios, making it an attractive long-term investment.
Tariff Turmoil Got Your Portfolio Down? All It Takes Is $5,000 Invested in This Rock-Solid Vanguard ETF to Help Generate $150 in Passive Income Per Year.
It's been a rough start to 2025, with the S&P 500 having its worst quarter since 2022 followed by escalating trade tensions in April. Yet through it all, the utilities sector has been a passive-income powerhouse and a beacon of safety thanks to its low volatility.
Want Decades of Passive Income? Buy This Index Fund and Hold It Forever.
In 1976, Vanguard launched the first index fund. Since then, thousands more have come into existence, giving investors an easy and affordable way to buy a passively managed basket of stocks.
2 Vanguard ETFs to shield your portfolio against inflation
With inflationary pressures continuing to weigh on global markets, investors are increasingly looking for ways to safeguard their portfolios.
