VPU: Vanguard Utilities ETF - For The New Age Of Clean Energy

Michael Fitzsimmons
21.98K Followers

Summary

  • Over the past year of the 2022 bear-market, the Vanguard Utilities ETF has delivered a total return of +4.9% and has outperformed the S&P 500 by 19%+.
  • That fact obviously points out the benefit of holding a well-diversified portfolio - including defensive sectors such as utilities, consumer staples, and healthcare, for example.
  • Yet the VPU ETF also has an admirable 9.86% average annual return over 10 years. Meantime, the ETF appears to be positioned well for the new age of renewable power.
  • The VPU ETF has an expense fee of 0.10% and has a TTM yield of 2.94%.
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As you know, navigating bear markets is a much more pleasant experience for investors who had built a well-diversified portfolio that included allocation to relatively defensive sectors such as consumer staples, healthcare, and financials - all of which tend to do better than the broad

This article was written by

21.98K Followers
Michael Fitzsimmons is a retired electronics engineer and avid investor. He advises investors to construct a well-diversified portfolio built on a core foundation of a high-quality low-cost S&P500 fund. For investors who can tolerate short-term risks, he advises an over-weight position in the technology sector, which he believes is still in the early stages of a long-term secular bull-market. For dividend income, and as a 4th generation oil & gas man, Fitzsimmons suggests investors consider a position in large O&G companies that provide strong dividend income and dividend growth. Fitzsimmons' articles on portfolio management recommend a top-down capital allocation approach that is aligned with each individual investor's personal situation (i.e. age, retired/working, risk tolerance, income, net worth, goals, etc) and might include allocations into investment categories such as the S&P500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ED either through stock ownership, options, or other derivatives. 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.

I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.

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