5-Star ETFs Poised to Pop: Vanguard Energy

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

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

Vanguard Energy facts

Inception September 2004
Total Assets $1.78 billion
Investment Approach Seeks to track the performance of the MSCI U.S. Investable Market Energy 25/50 Index, which is made up of stocks of large, medium-size, and small U.S. companies within the energy sector.
Expense Ratio 0.24%
1-Year / 3-Year / 5-Year Annual Returns 10.1% / 18.8% / 4.4%
Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight ExxonMobil (NYSE: XOM  ) (24.9%)
Chevron (NYSE: CVX  ) (12.6%)
Schlumberger (NYSE: SLB  ) (5.1%)
Dividend Yield 1.2%
Alternatives iShares Dow Jones U.S. Energy (NYSE: IYE  )
iShares S&P Global Energy (NYSE: IXC  )

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 97% of the 422 members who have rated Vanguard Energy believe the ETF will outperform the S&P 500 going forward. These bulls include crisafugate and jbungard4.

Having gotten on board last year, crisafugate touched on the tailwinds working in the ETF's favor: "Peak energy has arrived with no alternatives. People's addiction to energy combined with the increasing demand for energy will cause the value of energy stocks to increase."

Vanguard Energy, in particular, sports an expense ratio of just 0.24%. That's lower than that of other energy ETFs like iShares Dow Jones U.S. Energy (0.47%) and iShares S&P Global Energy (0.48%).  

CAPS member jbungard4 expands on the inexpensive opportunity:

Energy stocks are a long-term winner. World-wide demand for energy continues to increase while energy resources are increasingly under pressure to meet this insatiable demand. Vanguard's Energy ETF captures the energy sector as a low-cost pure play.

What do you think about Vanguard Energy, 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 Energy? 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 Chevron. 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.


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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.

  • Report this Comment On December 02, 2011, at 11:20 AM, kariku wrote:

    "Energy stocks are a long-term winner", maybe, but ETFs are long-term losers.

    Again, nothing pops !

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