VDE: A Risky Energy ETF Play Ahead Of Recession And Demand Destruction

Jun. 22, 2022 12:47 AM ETVanguard Energy ETF (VDE)8 Comments
Komal Sarwar profile picture
Komal Sarwar
738 Followers

Summary

  • Vanguard Energy ETF (VDE) may not be a good investment ahead of the recession.
  • There is a possibility that oil prices and energy stocks will decline in the second half of 2022 due to demand destruction.
  • As the energy sector is sensitive to economic growth, waiting for a better buying opportunity may be a better strategy than riding the current momentum.
Collapsing oil prices in dollars USD - economic recession conception.

andriano_cz/iStock via Getty Images

The Vanguard Energy ETF (NYSEARCA:VDE) has lost more than 20% of its value since hitting a 52-week high of $130 early this month due to rising interest rates and concerns about a recession. I believe the VDE price may fall further in

This article was written by

Komal Sarwar profile picture
738 Followers
Komal has a strong understanding of and passion for finance. She has worked for international clients for many years on several projects related to the stock market and equity research. Komal likes to find undervalued stocks with strong business models and long-term growth trends.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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