Vanguard Energy ETF

VDE

Market cap $9B

The Vanguard Energy ETF is up 23% year to date. Geopolitical risks, supply restrictions, and relative valuations could all help keep this rally going.

Launched on September 23, 2004, the Vanguard Energy ETF (VDE) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Broad segment of the equity market.

Energy companies are generating some of the strongest cash flows in the market — yet their valuations still reflect recession-level pessimism.

The tech sector has been largely responsible for lifting the major averages higher over the past few years. In 2026, a market rotation is pushing tech to the background and creating new leaders.

Energy ETFs invest in dozens of companies, which can help manage risk when approaching the volatile sector. Passive energy sector ETFs are heavily concentrated in a handful of stocks like ExxonMobil, Chevron, and ConocoPhillips.

Passive investors looking to take on a more contrarian position may wish to consider some of the sectors that most investors may be ignoring as the rise of the artificial intelligence (AI) boom continues.

Energy ETFs like XLE come into focus as EIA forecasts a 2026 US natural gas price dip, followed by a sharp rebound expected in 2027.

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As a Vanguard ETF, it sports a low annual fee. This ETF is poised to benefit from the skyrocketing demand for energy due to artificial intelligence (AI).

Oil ETFs are rallying as U.S.-Venezuela maritime clashes lift crude prices, adding a geopolitical risk premium.