5-Star ETFs Poised to Pop: Vanguard Utilities

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Vanguard Utilities ETF (NYSE: VPU  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Vanguard Utilities and see what CAPS investors are saying about the ETF right now.

Vanguard Utilities facts

Inception January 2004
Total Assets $947.4 million
Investment Approach Seeks to track the performance of the MSCI US Investable Market Utilities 25/50 Index, which includes stocks of U.S. companies within the utilities sector.
Expense Ratio 0.24%
1-Year / 3-Year / 5-Year Return 15.6% / 12.1% / 3.7%
Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight Southern (NYSE: SO  ) (6.6%)
Duke Energy (NYSE: DUK  ) (4.9%)
PPL (NYSE: PPL  ) (3.1%)
Dividend Yield 3.6%
Alternatives iShares Dow Jones US Utilities (NYSE: IDU  )
iShares S&P Global Utilities (NYSE: JXI  )

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 95% of the 107 members who have rated Vanguard Utilities believe the ETF will outperform the S&P 500 going forward. These bulls include CKMayOrg and johnw106.

Having gotten on board several years ago, CKMayOrg listed several of the ETF's positives: "Safe sector for a ... volatile market, great average returns, highest [S]harpe ratio of any similar ETFs (one of my favorite ways to compare ETFs), and it's Vanguard! Gotta love Vanguard, they never let me down."

In fact, Vanguard Utilities sports a low expense ratio of 0.24%. That's cheaper than other utility ETFs like iShares Dow Jones US Utilities (0.47%) and iShares S&P Global Utilities (0.48%).

CAPS member johnw106 elaborates on the bull case:

A very attractive addition to a portfolio to grant exposure to the utility sector or a core holding for a buy and hold ETF portfolio.

This ETF slides nicley into the income allocation section and gives instant diversifacation among the top utilty companys.

Mild growth potential is icing on a very tasty cake for those with a time horizon of five or more years.

What do you think about Vanguard Utilities, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Vanguard Utilities? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Southern. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1586512, ~/Articles/ArticleHandler.aspx, 10/24/2016 12:37:54 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,224.95 79.24 0.44%
S&P 500 2,149.39 8.23 0.38%
NASD 5,300.78 43.38 0.83%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

VPU.DL2 $ Down %
Vanguard Utilities… CAPS Rating: *****
DUK $78.04 Up +0.02 +0.03%
Duke Energy CAPS Rating: ***
PPL $33.44 Up +0.12 +0.36%
PPL CAPS Rating: *****
SO $50.73 Up +0.20 +0.39%
Southern Company CAPS Rating: ***