Vanguard Energy ETF

VDE

Market cap $7.09B

Looking for broad exposure to the Energy - Broad segment of the equity market? You should consider the Vanguard Energy ETF (VDE), a passively managed exchange traded fund launched on September 23, 2004.

Dividend stocks and exchange-traded funds (ETFs) don't look all that appealing when the S&P 500 is making a new all-time high seemingly every week. However, folks who want to implement a passive income strategy to achieve a long-term financial goal may find high-yield ETFs an excellent choice for investing in the market without having the total return solely depend on stock prices going up.

Why not have your money make you money starting today with dividend-paying ETFs? Not only do these ETFs offer a good deal of diversification, but they can also help lower your overall risk compared to investing in an average security.

The S&P 500 has historically averaged a return of around 10% per year -- making it a powerful tool for growing your wealth over time. But its gains have been much bigger lately, with 2023 and 2024 each notching returns of more than 20%.

In addition, as noted by 247WallSt.com contributor Rich Duprey in May 2025, “The Vanguard Dividend Appreciation ETF's 1.75% 12-month trailing dividend yield may seem modest, but its strength lies in dividend growth, averaging 10.7% annually over the past five years.

Looking for broad exposure to the Energy - Broad segment of the equity market? You should consider the Vanguard Energy ETF (VDE), a passively managed exchange traded fund launched on September 23, 2004.

Mick Jagger and the Rolling Stones had it right when they sang, "Time Is on My Side." If you're looking to build up solid dividend income, time is on your side, too.

I am downgrading VDE to a hold after a strong rally, citing potential near-term downside if Middle East tensions ease and oil prices fall. VDE remains attractively valued with a high-yield and solid profitability, but technical resistance and seasonal headwinds suggest caution. The ETF's concentrated portfolio and high volatility add risk, while liquidity remains a bright spot with tight spreads and strong trading volume.

Not only do these ETFs off a good deal of diversification, but they can also help lower your overall risk compared to investing in an average security.

Given the market volatility this year, there are likely investors out there who would prefer an investment strategy that avoids some of the stressful market swings that have started to become the norm. After all, the broader benchmark S&P 500 index has already experienced multiple swings of nearly 20% both up and down, enough activity to make anyone's stomach churn.