Vanguard Utilities ETF (VPU)
XMEX 
Summary
VPU Chart
$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.
Vanguard Utilities ETF (VPU) FAQ
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Has Vanguard Utilities ETF ever had a stock split?
Vanguard Utilities ETF Profile
| XMEX Exchange | US Country |
Overview
The mentioned fund is structured to implement an indexing investment strategy that aims to mirror the performance of the MSCI US Investable Market Index (IMI)/Utilities 25/50. This particular index encompasses a wide array of U.S. companies within the utilities sector, covering businesses of different sizes including large, mid-size, and small companies. The utilities sector, as classified under the Global Industry Classification Standard (GICS), is essential for investors looking for exposure to utility companies. The investment approach of the fund is rooted in attempting to replicate the specific target index by investing in all or substantially all the stocks that constitute the index. The intention is to maintain the holdings in a manner that each stock aligns closely with its proportional weighting in the index itself. It's noteworthy that the fund operates with a non-diversified status, concentrating its investments specifically within the utilities market segment of the U.S. economy.
Products and Services
- Indexing Investment Approach
This method of investment seeks to track the performance of the MSCI US Investable Market Index (IMI)/Utilities 25/50, allowing the fund to aim for the replication of the overall performance of the utilities sector within the U.S. market. Through such an approach, investors gain exposure to a broad spectrum of utility companies, encompassing entities of varying sizes, thus benefitting from the sector's overall trends and performances.
- Utilities Sector Investment
As the fund's investments are channeled towards companies classified within the utilities sector under the GICS, it provides a specialized focus. This sector includes companies involved in the provision of essential services like water and electricity, thereby presenting a unique investment proposition. The fund's focused investment in this sector can appeal to investors interested in utilities due to their often-considered defensive nature, which can provide stability during various market conditions.
- Non-Diversified Fund Status
Given its non-diversified status, the fund mainly invests in the utilities segment of the U.S. market, without spreading its investment across a wide variety of sectors. This can result in higher volatility or risk due to concentration in a single sector. However, for investors seeking specific exposure to the utilities sector, this concentration allows for a more targeted investment strategy, potentially aligning with their investment objectives and risk tolerance.
