Vanguard Energy Index Fund Price & Performance (VDE)

The Vanguard Utilities ETF is seeing a surge in investor attention due to rising electricity demand driven by artificial intelligence applications. Data centers are consuming significantly more power, with electricity needs expected to grow at rates not seen in decades. The ETF's focus on electric utilities positions it well for this trend.12

The Vanguard Energy ETF's heavy reliance on ExxonMobil and Chevron, which comprise over a third of its holdings, raises diversification concerns. However, these oil giants’ robust financial performance and sector leadership mitigate some risks, making the ETF appealing for energy-focused investors.34

Market indicators like the Fear & Greed Index and Buffett Indicator signal increased caution among investors. Defensive ETFs, such as those focusing on utilities and gold, are gaining traction as hedges against economic uncertainty and market turbulence, fueled by geopolitical tensions and tariff impacts.56