President Trump declared a national energy emergency following his inauguration. Trump's pro-fossil fuel agenda could help the energy sector rebound. Less regulation and more support for big oil could help expand fossil fuels.
We are only a few weeks into the new year, but one sector is separating itself from the pack. That sector is energy, which is up 9.7% year to date compared to just a 2% return for the S&P 500 at the time of this writing.
Investors can find plenty of great exchange-traded funds (ETFs) to generate income. Vanguard, one of the biggest fund managers around, offers 88 ETFs.
VDE's yield of 3.15% is lower than iShares MSCI Global Energy Producer at 4.13%, but its expense ratio is significantly cheaper. The P/E of VDE is 13.5X, half that of the S&P 500; earnings growth is expected to be negative in 2024 but forecasted to turn positive in FY 2025. With global GDP forecasted to grow by 2.7%, China at 4.5%, inflation above 2%, and potential rate cuts, energy demand could rise in 2025.
It's been a great year for the S&P 500, with many top growth stocks and value stocks hitting all-time highs. But because growth stocks like Nvidia make up such a large share of the S&P 500 -- and have produced such strong gains -- exchange-traded funds (ETFs) that don't hold those names would have had a tough time beating the S&P 500 this year.
Investment management firm Vanguard offers low-cost exchange-traded funds (ETFs) that hold dozens if not hundreds of stocks. A key benefit of these ETFs is their diversification, which can be difficult to replicate through buying individual stocks alone.
Looking for broad exposure to the Energy - Broad segment of the equity market? You should consider the Vanguard Energy ETF (VDE), a passively managed exchange traded fund launched on 09/23/2004.
Investment management company Vanguard offers more than 60 equity-focused exchange-traded funds (ETFs) that focus on various investment styles and themes -- all while charging expense ratios as low as 0.03% to as high as 0.22%.
Vanguard Energy Index Fund ETF Shares has turned bullish, driven by a shift in U.S. energy policy favoring increased oil and gas production. The VDE ETF's holdings in leading integrated oil companies and its bullish trend since 2020 support a positive investment thesis. The incoming Trump administration's policies will likely boost U.S. energy output, potentially benefiting VDE, despite potential lower oil prices.
Launched on 09/23/2004, the Vanguard Energy ETF (VDE) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Broad segment of the equity market.
Vanguard Energy Index Fund ETF Shares has been virtually unchanged since late November 2023. Crude oil prices have fallen to new 2024 lows due to seasonal weakness, the Chinese economic slowdown, and OPEC+ production strategies. The VDE ETF has declined 16.25% since April 2024, mirroring the 25.5% drop in crude oil prices, but remains a potential buying opportunity.
A number of factors are driving oil prices lower. By leaving out key international players, the Vanguard Energy ETF is a bet on the strength of the U.S. oil and gas industry.