$9.8 Billion Utilities ETF Is A 3% Yielding Backdoor Bet on AI's Explosive Growth
The Vanguard Utilities Index Fund ETF Shares (NYSEARCA:VPU) generates its 2.73% dividend yield by holding a diversified portfolio of 67 utility companies across the electric, gas, and water sectors.
VPU: Time For Utilities To Turn Higher (Upgrade)
I am upgrading Vanguard Utilities Index ETF (VPU) to a "Buy," citing improved valuation and technical support. VPU's PEG ratio has improved, with long-term earnings growth rising and a fair 17.8x P/E multiple. The ETF offers a 2.71% yield, strong liquidity, and record-high cumulative dividends last year.
Should You Invest in the Vanguard Utilities ETF (VPU)?
The Vanguard Utilities ETF (VPU) was launched on January 26, 2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Utilities - Broad segment of the equity market.
A Once-in-a-Decade Investment Opportunity: 1 Vanguard Index Fund to Buy for the AI Boom
U.S. electricity demand is forecast to grow at its fastest pace in decades as electrification, industrial reshoring, and artificial intelligence boost power demand. The utilities sector underperformed the S&P 500 during the past 20 years, but robust demand for electricity could lead to outperformance in the coming years.
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.
