Is Vanguard Utilities ETF a good investment? (2024)

Is Vanguard Utilities ETF a good investment?

Vanguard Utilities ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VPU is a sufficient option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market.

Are utility ETFs a good investment?

Utilities ETFs invest in the equity of companies from the utilities industry. These companies are known for their reliable dividend payments and negative correlations to interest rates. A favorite for income investors, utilities often have higher dividend yields and carry moderate levels of risk.

What is Vanguard's best-performing ETF?

The largest Vanguard ETF is the Vanguard 500 Index Fund VOO with $404.97B in assets. In the last trailing year, the best-performing Vanguard ETF was MGK at 42.45%. The most recent ETF launched in the Vanguard space was the Vanguard Intermediate-Term Tax-Exempt Bond ETF VTEI on 01/30/24.

Is Vanguard Energy ETF a good investment?

Performance and Risk

VDE has traded between $105.87 and $130.56 during this last 52-week period. The ETF has a beta of 1.37 and standard deviation of 31.32% for the trailing three-year period, making it a high risk choice in the space. With about 114 holdings, it effectively diversifies company-specific risk.

Why is VPU down so much?

A key reason was poor market sentiment resulting from negative earnings surprises. However, Q2 2023 results were much better and more in line with 2022 when the sector outperformed. The good news for investors is that a substantial valuation discount remains.

What is the best utility to invest in right now?

Do utility stocks do well in a recession?

Utilities outperformed the larger market ahead of the 2001 and 2007-2009 recessions. Utilities also performed well throughout 2022 despite recession concerns.

Which Vanguard ETF pays the highest dividend?

What is the best ETF to invest in 2023?

BetaShares Crypto Innovators ETF (ASX: CRYP)

Our final and best-performing ASX ETF of 2023 was this cryptocurrency-focused fund from provider BetaShares. CRYP aims to give investors exposure to the cryptocurrency sector.

Are Vanguard ETFs better than Fidelity?

Bottom Line. If you want to actively trade within your accounts, Fidelity might be the better option. However, if you want to focus more on index investing, or you want to use a robo-advisor, Vanguard has a slight edge.

Why are Vanguard ETFs so cheap?

Vanguard's unique cost structure, the economies of scale it has achieved, and the total number of assets under management (AUM) allow it to offer its ETFs at the lowest cost available in the market. We've listed 10 of the firm's cheapest ETFs by their expense ratio.

How safe are Vanguard ETFs?

But Vanguard is a fund provider with a reliable company history, and well-diversified ETFs tend to be safer than individual stocks. That's because if a single asset within an ETF goes out of business, you have hundreds, or even thousands, of other assets that can help bolster your portfolio.

What is the highest paying ETF?

Why are utilities stocks down 2023?

The market now expects the Fed to begin cutting rates in March, following 11 increases since 2022 aimed at taming inflation. The rate hike cycle contributed to utilities posting the worst performance among the S&P 500's 11 sectors in 2023.

Which is better VPU or Xlu?

Both investments have delivered pretty close results over the past 10 years, with VPU having a 8.23% annualized return and XLU not far ahead at 8.45%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.

Does VPU pay a dividend?

Vanguard Utilities ETF (VPU)

VPU has a dividend yield of 3.70% and paid $4.78 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Dec 19, 2023.

What is the smartest thing to invest in right now?

Will utility stocks go up in 2024?

In both 2022 and 2023, utilities' stock prices slowly rolled downhill before rallying in the fourth quarter to trim the losses. Since 2021, only dividends have kept investors here afloat. We think utilities are better positioned going into 2024 to produce the steadier positive returns that investors expect.

What is the hottest stock to invest in right now?

When should I invest in utility stocks?

During times of economic downturns with low interest rates, utilities become attractive. They exhibit lower volatility and provide a desirable source of predictable investment returns from the dividends they pay on their shares.

Do utility stocks do well during inflation?

Moreover, during years of historically high inflation, gains in utility shares generally outpaced increases in the Consumer Price Index (CPI), a widely used measure of inflation. Over those same periods, bond gains generally lagged the rate of inflation as well as the performance of utility stocks.

Are utilities a good investment now?

Utility stocks are considered safe-haven investments that may hold value better than other types of stocks during times of economic hardship. That's because people are going to need electricity, natural gas and water for their homes and businesses regardless of whether or not we're in a recession.

What ETF has 12% yield?

In fact, an ETF called the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD), launched in 2013, currently boasts an eye-catching yield of 12%. While the ETF holds appeal for income investors, there are also several things that investors should be aware of before jumping in right after seeing that eye-popping yield.

Do any Vanguard ETFs pay monthly dividends?

Key Takeaways. Vanguard is a large investment advisor offering mutual funds and ETFs, many of which pay dividends. Most of Vanguard's ETF products pay monthly or quarterly dividends. Expense ratios are the fees investors pay for investing in a fund; the lower the better.

Which ETF has had the highest return on investment?