VDE: I'm A Buyer On The Recent Energy Pullback

Dec. 17, 2022 2:29 AM ETVanguard Energy ETF (VDE)6 Comments


  • VDE offers an easy way for retail investors to get Energy sector exposure. Through 2022, this has been a top performer.
  • In the very near term, the Energy sector has sold off (along with most of the market). I view this as a buying opportunity.
  • Dividend growth has been very robust in 2022. Further, I expect a China rebound in 2023 that will aid in the demand story for oil.
  • OPEC+ has already signaled it will prevent too much excess from hitting the oil market. While potentially bad for consumers, it is a positive for VDE investors.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

Energy Sector Stocks

Douglas Rissing

Main Thesis & Background

The purpose of this article is to evaluate the Vanguard Energy ETF (NYSEARCA:VDE) as an investment option at its current market price. This is a passively managed sector fund with an objective to "track the

Fund Performance

Fund Performance (Seeking Alpha)

1-Month Performance

1-Month Performance (Google Finance)

YTD Return of VDE

YTD Return of VDE (Seeking Alpha)

6-Month Return (WTI Crude)

6-Month Return (WTI Crude) (CNBC)

OPEC+ Production Cuts

OPEC+ Production Cuts (World Bank)

US Inflation

US Inflation (Department of Labor)

Electoral Map (<a href='https://seekingalpha.com/symbol/USA' _fcksavedurl='https://seekingalpha.com/symbol/USA' title='Liberty All-Star Equity Fund'>USA</a>)

Electoral Map (USA) (Associated Press)

Consider the Income Lab

This article was written by

Dividend Seeker profile picture
CEF/ETF income and arbitrage strategies, 8%+ portfolio yields

I've been an investor since 2008, which was an invaluable and humbling experience. This is central to my strategy of looking for quality, value, and diversification - generally staying away from risky/over-hyped ideas. I won't pump any investment nor discuss a topic I don't genuinely follow / research. In that spirit, I list my portfolio here for transparency.  

I'm a native New Yorker and I work for a major U.S. bank. I escaped to North Carolina for graduate school and I don't see myself ever leaving. I was a D1 athlete in college (men's tennis) and compete competitively to this day. My Bachelor's and MBA are both in Finance.

Broad market: VOO; QQQ; DIA, RSP



Dividends: DGRO; SDY, SCHD

Municipals/Debt Funds: NEA, PCK, VCV, PML, BGT, PDO


Cash position: 25%

Disclosure: I/we have a beneficial long position in the shares of VDE, UCO 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.

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