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VDE - ETF AI Analysis

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VDE

Vanguard Energy ETF (VDE)

Rating:72Outperform
Price Target:
VDE, the Vanguard Energy ETF, has a solid overall rating, largely driven by heavyweight holdings like Exxon Mobil and Chevron, which bring strong financial performance, robust cash generation, and strategic growth in energy production. Other key contributors such as ConocoPhillips, EOG Resources, and Schlumberger add to the fund’s strength with healthy balance sheets, attractive valuations, and positive earnings outlooks, though names like Valero, Marathon Petroleum, and Kinder Morgan introduce some caution due to valuation pressures, leverage, and weaker technical momentum. The main risk factor is the ETF’s heavy concentration in a single sector—energy—which can make the fund more sensitive to commodity price swings and industry-specific downturns.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year, helped by solid returns from many of its holdings.
Leading Energy Companies
Top positions like Exxon Mobil, Chevron, and other major energy firms have shown steady to strong performance, supporting the fund’s overall results.
Low Expense Ratio
The fund’s low annual fee means investors keep more of their returns compared with many higher-cost energy funds.
Negative Factors
Heavy Sector Concentration
With almost all assets in the energy sector, the ETF is highly sensitive to swings in oil and gas markets.
High Weight in a Few Stocks
A large share of the fund is concentrated in a small number of companies, increasing the impact if any of these stocks perform poorly.
Limited International Diversification
The portfolio is overwhelmingly invested in U.S. companies, offering little geographic diversification for investors seeking broader global exposure.

VDE vs. SPDR S&P 500 ETF (SPY)

VDE Summary

Vanguard Energy ETF (VDE) is a fund that tracks the MSCI US IMI 25/50 Energy index, giving you broad exposure to U.S. energy companies. It mainly holds large oil and gas firms like Exxon Mobil and Chevron, along with other businesses involved in producing and transporting energy. Someone might invest in VDE to bet on the long-term demand for energy and to add sector diversification to their portfolio. However, this ETF is heavily tied to the energy sector, so its price can swing a lot with oil and gas prices and changes in the global economy.
How much will it cost me?The Vanguard Energy ETF (VDE) has an expense ratio of 0.09%, meaning you’ll pay $0.90 per year for every $1,000 invested. This is lower than average because it is a passively managed fund that tracks an energy sector index, keeping costs down for investors.
What would affect this ETF?The Vanguard Energy ETF (VDE) could benefit from rising global energy demand, advancements in renewable energy technologies, and favorable oil and gas prices, which would support its top holdings like Exxon Mobil and Chevron. However, it may face challenges from regulatory changes targeting fossil fuels, geopolitical tensions affecting oil supply, or economic slowdowns reducing energy consumption. Its focus on U.S.-based energy companies makes it sensitive to domestic policies and market conditions.

VDE Top 10 Holdings

VDE is an all‑U.S. energy play, and its story starts with Exxon Mobil and Chevron, which together steer much of the fund’s direction. Both have been steadily rising, giving the ETF a solid backbone as oil prices stay supportive. ConocoPhillips and EOG Resources add more upstream punch, also trending higher and reinforcing the fund’s momentum. The real turbochargers lately are refiners like Marathon Petroleum and Valero, whose strong runs have been powering returns, while pipeline names such as Kinder Morgan are more mixed, occasionally tapping the brakes on performance.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Exxon Mobil21.94%$2.73B$682.54B47.99%
74
Outperform
Chevron14.31%$1.78B$422.93B36.25%
71
Outperform
Conocophillips5.80%$722.98M$165.00B48.60%
78
Outperform
Valero Energy3.75%$466.66M$112.41B149.12%
69
Neutral
Marathon Petroleum3.73%$465.08M$111.19B119.62%
66
Neutral
Williams Co3.41%$424.23M$89.11B23.87%
76
Outperform
Phillips 663.35%$416.63M$103.53B98.40%
73
Outperform
EOG Resources3.18%$395.87M$77.29B24.71%
78
Outperform
SLB2.96%$368.23M$83.20B57.60%
75
Outperform
Kinder Morgan2.45%$304.96M$68.72B11.89%
68
Neutral

VDE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
170.28
Positive
100DMA
165.35
Positive
200DMA
155.15
Positive
Market Momentum
MACD
3.63
Positive
RSI
60.38
Neutral
STOCH
58.12
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VDE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 179.94, equal to the 50-day MA of 170.28, and equal to the 200-day MA of 155.15, indicating a bullish trend. The MACD of 3.63 indicates Positive momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 58.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VDE.

VDE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$11.08B0.09%
72
Outperform
$146.67B0.09%
74
Outperform
$120.20B0.08%
75
Outperform
$54.50B0.08%
72
Outperform
$42.56B0.08%
74
Outperform
$13.59B1.01%
79
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VDE
Vanguard Energy ETF
181.57
58.66
47.73%
VGT
Vanguard Information Technology ETF
XLK
Technology Select Sector SPDR Fund
XLF
Financial Select Sector SPDR Fund
XLE
Energy Select Sector SPDR Fund
AMLP
Alerian MLP ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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