VDE

Vanguard Energy ETF (VDE) is an exchange-traded fund designed to track the performance of the MSCI US Investable Market Energy 25/50 Index, which includes companies operating within the U.S. energy sector. The ETF is managed by Vanguard and trades under the ticker VDE on NYSE Arca.

Classified as a sector equity ETF, VDE seeks to reflect, before fees and expenses, the aggregated performance of the companies included in its benchmark index. The fund follows a passive management strategy, maintaining a portfolio structured to replicate the composition and weighting of the benchmark.

The index includes U.S. companies across multiple capitalization ranges involved in energy exploration, production, refining, transportation, storage, and energy services. Constituents are weighted by free-float-adjusted market capitalization.

The composition maintains significant concentration in companies associated with oil and natural gas, which represent the largest portion of the U.S. energy sector.

Composition / Exposure profile

VDE provides exposure to the U.S. energy sector through companies operating across multiple segments of the energy value chain.

The ETF’s economic exposure is primarily associated with:

• Oil and natural gas.

• Refining and distribution.

• Energy services and equipment.

• Transportation and storage infrastructure.

• Energy commodities.

The fund may also maintain limited exposure to companies associated with alternative-energy solutions and energy-transition initiatives. The ETF’s behavior is sensitive to global oil prices, worldwide energy supply-and-demand dynamics, and commodity-market cycles.

Structure and costs

VDE shares trade on the secondary market on NYSE Arca during regular trading hours. Creation and redemption occur through authorized participants, helping maintain alignment between market price and net asset value.

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. VDE may distribute income derived from dividends paid by companies held in the portfolio.

History and evolution of the ETF

The Vanguard Energy ETF was launched in 2004, during a period of expansion in sector-focused ETFs tied to the U.S. equity market. Since inception, the fund has reflected movements associated with global oil prices, energy-sector cycles, and fluctuations across international commodity markets.

In recent years, VDE has reflected changes related to OPEC+ production policy, energy inflation, global economic recoveries and slowdowns, and movements tied to the global energy transition and international oil-and-gas markets.

Additional Information

Vanguard Energy ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $9.85 Billions.

Over the past 12 months, Vanguard Energy ETF recorded a return of 39.18%, with its price trading between $118.37 and $176.95 during the same period.

The ETF is traded under the ticker VDE.