Vanguard Utilities ETF

VPU

Market cap $8.04B

This sector ETF isn't the highest-yielding fund on the market, but it's a smart idea for some investors. It's a sneaky play on a beloved investment theme.

Investing for the long term allows you to not have to worry about day-to-day market developments. These Vanguard funds have minimal fees and can be valuable investments to hang on to for decades.

Defensive stocks are defined as the stocks in companies that are grouped in sectors supplying goods and services in constant demand as essentials, and thus, do not follow trends of popularity.

The Vanguard Utilities ETF (VPU) was launched on January 26, 2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Utilities - Broad segment of the equity market.

I want a glorious 2026 for my portfolio, and I've put in thousands of hours of research in recent years to try to pinpoint some top stocks I want to own for the long-term.

A third Fed rate cut this year is boosting utilities, making diversified Utility ETFs like XLU an attractive way to tap lower borrowing costs and steady dividends.

U.S. electricity demand is forecast to grow at its fastest pace in decades as electrification, industrial reshoring, and artificial intelligence boost power demand. The utilities sector underperformed the S&P 500 during the past 20 years, but robust demand for electricity could lead to outperformance in the coming years.

Utility ETFs like XLU gain momentum as AI-driven data center power demand and falling rate expectations boost the sector's appeal.

Vanguard S&P 500 ETF is a long-term winner regardless of when you buy it. Vanguard Dividend Appreciation ETF focuses on an investment approach that highlights well-run companies.

The Vanguard Utilities ETF (VPU) provides defensive exposure with one-third to one-half of returns coming from dividends. The iShares 20 Plus Year Treasury Bond ETF (TLT) offers 4.3% yield and hedges against stock market corrections.