VPU - ETF AI Analysis
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Vanguard Utilities ETF (VPU)
VPU, the Vanguard Utilities ETF, has a solid overall rating driven mainly by strong, stable utility leaders like NextEra Energy and Duke Energy, which benefit from positive earnings calls, strategic growth plans, and generally resilient financial performance. However, several holdings such as Sempra Energy and Xcel Energy face headwinds from high leverage, cash flow challenges, and bearish technical signals, which weigh on the fund’s rating. The main risk factor is the sector concentration in utilities, where many companies share similar issues like high debt and pressure on cash flows, making the ETF sensitive to interest rates and regulatory changes.
VPU vs. SPDR S&P 500 ETF (SPY)
- AUM
- 8.17B
- Region
- North America
- Expense Ratio
- 0.09%
- Beta
- 0.23
- Issuer
- Vanguard
- Inception Date
- Jan 26, 2004
- Dividend Yield
- 2.78%
- Asset Class
- Equity
- Index Tracked
- MSCI US IMI 25/50 Utilities
VPU Summary
Vanguard Utilities ETF (VPU) is a fund that follows the MSCI US IMI 25/50 Utilities index, focusing mainly on U.S. utility companies that provide electricity, water, and natural gas. It holds well-known names like NextEra Energy and Duke Energy, giving investors a simple way to invest in essential services that people use every day. Someone might consider VPU for diversification and potentially steadier income, since utilities are often less sensitive to economic ups and downs. However, it can still go up and down with the stock market and is heavily concentrated in the utilities sector.
How much will it cost me?
VPU has an annual expense ratio of 0.09%, which means you’ll pay about $0.90 per year for every $1,000 invested. This cost is lower than the average ETF because it’s a passively managed fund that simply tracks a utilities sector index instead of paying managers to pick individual stocks.
What would affect this ETF?
Because VPU focuses heavily on U.S. utilities like NextEra Energy, Southern Company, and Duke Energy, it can benefit from steady demand for electricity and gas, supportive energy policies, and investment in cleaner power and grid upgrades. On the downside, higher interest rates, stricter regulations, or slower economic growth in the U.S. could pressure utility profits and make this defensive sector less attractive compared with faster-growing areas of the market.
VPU Top 10 Holdings
VPU is essentially a bet on U.S. utilities, with heavyweight NextEra Energy setting the tone: it’s been mixed lately, rising in the short term but losing ground over the past few months. Southern Company, Duke Energy, and American Electric Power have been steadier climbers, helping support the fund’s overall performance. On the flip side, Constellation Energy and Vistra have been lagging, acting as a bit of a brake. With nearly all exposure in U.S. power and gas names, this ETF is a classic defensive play rather than a high-octane growth story.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 NEE | NextEra Energy | 11.39% | $1.09B | $185.51B | 7.44% | 71Outperform |
 SO | Southern Co | 6.74% | $642.24M | $107.12B | 2.11% | 68Neutral |
 DUK | Duke Energy | 6.41% | $610.90M | $101.04B | 5.10% | 70Outperform |
 CEG | Constellation Energy Corporation | 5.73% | $545.54M | $87.06B | -34.03% | 68Neutral |
 AEP | American Electric Power | 4.66% | $443.68M | $70.37B | 5.85% | 69Neutral |
 D | Dominion Energy | 3.84% | $365.84M | $61.35B | 16.67% | 63Neutral |
 SRE | Sempra Energy | 3.68% | $350.28M | $54.21B | -13.59% | 61Neutral |
 VST | Vistra Corp | 3.36% | $320.63M | $40.37B | -40.39% | 65Neutral |
 ETR | Entergy | 3.34% | $318.32M | $53.47B | 14.56% | 66Neutral |
 XEL | Xcel Energy | 3.17% | $302.41M | $51.67B | -1.01% | 61Neutral |
VPU Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VPU, the sentiment is Positive. The current price of 186.96 is above the 20-day moving average (MA) of 183.63, above the 50-day MA of 180.35, and below the 200-day MA of 189.62, indicating a neutral trend. The MACD of 2.40 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 71.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VPU.
VPU Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| VPU | $186.96 | $199.00(6.44% Upside) | $8.17B | 0.09% | 66Neutral |
 XLB | $52.33 | $60.28(15.20% Upside) | $8.48B | 0.08% | 67Neutral |
 AIRR | $90.62 | $142.73(57.50% Upside) | $8.28B | 0.69% | 68Neutral |
 FUTY | $55.84 | $62.26(11.49% Upside) | $2.06B | 0.08% | 67Neutral |
 IDU | $110.81 | $123.12(11.11% Upside) | $1.44B | 0.37% | 67Neutral |
 UTES | $73.52 | $88.13(19.87% Upside) | $1.12B | 0.49% | 65Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| VPU | Vanguard Utilities ETF | 186.96 | -2.20 | -1.16% | |
| XLB | Materials Select Sector SPDR Fund | 52.33 | 10.18 | 24.16% | |
| AIRR | First Trust RBA American Industrial Renaissance ETF | 90.62 | -6.55 | -6.74% | |
| FUTY | Fidelity MSCI Utilities Index ETF | 55.84 | -0.58 | -1.03% | |
| IDU | iShares U.S. Utilities ETF | 110.81 | 0.86 | 0.78% | |
| UTES | Virtus Reaves Utilities ETF | 73.52 | -8.78 | -10.67% |
This 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.