Vanguard Energy ETF

Vanguard Energy ETF (VDE) is an index fund that holds 111 U.S. energy companies, from oil producers and refiners to pipeline and drilling-services firms. It tracks the MSCI US Investable Market Index (IMI)/Energy 25/50. Its 0.09% yearly expense ratio is far below the 0.37% average of similar funds, though Fidelity's FENY and SPDR's XLE cost slightly less. It is also concentrated: ExxonMobil and Chevron made up about 35% of assets as of August 31, 2026.

• Over the year to Oct 30, 2026, VDE returned +62.1%, 3rd of 9 among similar funds.
• Its 5-year annualized return was +23.3%.
• Its worst full calendar year was 2023 (0.0%); its best was 2022 (+62.9%).
• The deepest fall in its price history was 38.9% (Jun 8, 2020 to Oct 28, 2020), recovered by Jan 14, 2021.

As of Aug 31, 2026, the fund held 111 securities; the ten largest made up 65.38% of assets.

By sector

• Over the three months to Aug 31, 2026, investors withdrew a net $76.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -4.85%, +11.75%, +7.23%.

VDE is the exchange-traded share class of Vanguard Energy Index Fund. It aims to track the MSCI US Investable Market Index (IMI)/Energy 25/50. That index covers large, mid-size and small U.S. companies in the energy sector of the Global Industry Classification Standard (GICS), a widely used system for sorting companies into industries. The sector includes oil and gas producers, refiners, pipeline and storage companies, coal businesses, and firms that sell drilling equipment and services.

The fund doesn't pick stocks. It tries to own all or nearly all of the index's stocks in about the same proportions as the index, and it keeps at least 80% of net assets in them. In practice, the largest companies dominate. As of August 31, 2026, ExxonMobil was 21.4% of the fund, Chevron 14.1% and ConocoPhillips 6.0%, and the top 10 holdings made up 65.4%. The "25/50" in the index name refers to caps on how heavy the biggest companies can get. Portfolio turnover was 11%, so holdings change little from year to year.

The prospectus classifies the fund as nondiversified under the Investment Company Act of 1940. That means it can put more of its money into a few companies than a diversified fund can, so a handful of stocks, and the oil and gas prices behind them, can move the whole fund. Shares trade on NYSE Arca at market prices, which can differ slightly from the value of the holdings.

• VDE charges 0.09% a year, versus an average of 0.37% for the similar funds below (3rd of 9, cheapest first).
• Of that, 0.08% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $9 in the first year and $115 over 10 years (assuming a 5% annual return).

This is a nondiversified fund of energy stocks with large price swings, so it works more naturally as a small add-on to a broader portfolio than as its foundation.

VDE could add a focused stake in U.S. oil and gas companies, plus quarterly dividends. Its trailing 12-month yield was 2.14% as of October 27, 2026. Costs are low: about $9 in the first year on $10,000, under the SEC's standard example. The price swings are large. The fund lost 33.04% in 2020, and its worst quarter, which ended March 31, 2020, was a 52.43% drop. In the 2022 bear market it rose 44.9% while broad stocks fell, though it still slid 26.6% that summer before recovering by November 1, 2022. Its deepest drop since June 2020 was 38.9%, and it regained its earlier peak about 2.6 months after the low. This page has no figures for 2008. Anyone forced to withdraw in a year like 2020 would lock in heavy losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.