Vanguard Energy ETF

VDE

Market cap $9.57B

After leading the markets for much of the first half of the year, energy stocks tapered off from mid-May through the start of July as a tenuous agreement between Iran and the United States helped normalize oil prices. But tensions in the Middle East have once again flared up, with the two countries exchanging missile fire and conflicting statements about maritime traffic in the Strait of Hormuz.

BP and Shell shares have staged a strong comeback this week, helped by rising crude oil prices. BP jumped to 505p, its highest point since June 22, and 12.2% above its lowest level this year.

With S&P 500 earnings expected to rise 20% year over year, investors can take a more aggressive approach to equities. The Vanguard Growth ETF (VUG) and even the Vanguard Dividend Appreciation ETF (VIG) benefit from this.

Vanguard Energy ETF offers significantly lower ownership costs with a 0.09% expense ratio compared to 0.52% for VanEck Uranium and Nuclear ETF VanEck Uranium and Nuclear ETF focuses on a concentrated portfolio of 29 nuclear-related companies while Vanguard Energy ETF holds 111 diversified energy stocks Vanguard Energy ETF has delivered higher 1-year total returns but VanEck Uranium and Nuclear ETF has generated more growth over a five-year period

The Vanguard Energy ETF has outperformed the S&P 500 over the past five years thanks to higher oil prices. Meanwhile, the Vanguard Utilities ETF has underperformed the S&P 500 over the same period of time.

Alerian MLP ETF provides a significantly higher dividend yield through a concentrated portfolio of 20 midstream energy partnerships Vanguard Energy ETF offers a much lower expense ratio and broader exposure across 111 integrated energy companies Vanguard Energy ETF has delivered higher total returns over the past year but carries a higher historical maximum drawdown

Vanguard Energy ETF offers a significantly lower expense ratio than First Trust North American Energy Infrastructure Fund Vanguard Energy ETF has outperformed on a 1-year total return basis but has experienced a deeper historical maximum drawdown First Trust North American Energy Infrastructure Fund provides heavier exposure to utilities while Vanguard Energy ETF is almost entirely concentrated in the energy sector

Oil prices have fallen back to pre-war levels, but energy ETFs may still offer opportunity as refining, LNG demand, and tight supply support the sector.

State Street Energy Select Sector SPDR ETF provides a lower expense ratio and a higher distribution yield compared to Vanguard's offering. The Vanguard ETF holds 111 stocks to provide broader exposure, while the SPDR fund concentrates on just 21 industry leaders.

Tech capex and geopolitics have dominated the headlines this year, but opportunities emerge elsewhere. Dividend growth investing could be hitting its stride amid shifting macro and micro trends. Novel, forward-looking strategies may help asset allocators find alpha beyond traditional income approaches.