Vanguard Utilities ETF (VPU) is an exchange-traded fund designed to track the performance of U.S. utilities companies. The ETF is managed by Vanguard and trades under the ticker VPU on NYSE Arca.

Classified as a sector equity ETF, VPU seeks to reflect, before fees and expenses, the performance of the companies included in the MSCI US Investable Market Utilities 25/50 Index.

The fund follows a passive management strategy, maintaining a portfolio structured to replicate the composition and weighting of its benchmark index. The benchmark includes U.S. utilities companies across large-, mid-, and small-cap segments, with constituents weighted by free-float-adjusted market capitalization.

Composition / Exposure profile

VPU provides exposure to the U.S. utilities sector through companies associated with essential services and energy infrastructure.

The ETF’s economic exposure is primarily linked to:

• Electric utilities.

• Power generation and transmission.

• Natural gas distribution.

• Water and sanitation services.

• Public services infrastructure.

The ETF’s behavior is sensitive to U.S. interest rates, regulatory conditions, and fluctuations across the American energy market.

Structure and costs

VPU 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. VPU may distribute income derived from dividends paid by companies held in the portfolio.

History and evolution of the ETF

The Vanguard Utilities 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 the U.S. utilities sector, including regulatory changes, economic fluctuations, and transformations across the energy industry.

In recent years, VPU has reflected Federal Reserve interest-rate cycles, developments related to the energy transition, fluctuations in energy demand, and regulatory movements tied to the U.S. utilities sector.

Additional Information

Vanguard Utilities ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $8.02 billion.

Over the past 12 months, Vanguard Utilities ETF recorded a return of -1.09%, with its price trading between $177.98 and $205.87 during the same period.

The ETF is traded under the ticker VPU.