At a glance
VPU charges 0.09% a year, below the 0.39% average of the 8 funds most like it (the 3rd cheapest of 9). It has $10.08B in assets, the 2nd largest of that group; it paid 2.81% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −4.1% with distributions reinvested (S&P 500: +11.5%), 8th of those 9 funds; over three years it returned +17.0% a year. At its worst it fell 20.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 22 months after the low. Its ten largest positions make up 52.6% of the fund, out of 68 in all.
The short version
Vanguard Utilities ETF (VPU) is an index fund that tracks the MSCI US Investable Market Index (IMI)/Utilities 25/50. It holds large, mid-size and small US electric, gas and water utilities, plus independent power producers. Its 0.09% expense ratio is well below the 0.39% average for similar funds. It paid a 2.81% trailing yield in quarterly dividends as of October 27, 2026, but it holds only one sector and a few large companies make up much of it.
Price history
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VPU -4.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| VPU official prospectus, to Dec 31, 2024 | — | +23.07% | — | +6.02% | +8.20% | — |
| VPU price data to Oct 27, 2026 | +2.2% | -4.1% | +17.0% | +8.1% | — | +8.6% |
- Over the year to Oct 27, 2026, VPU returned -4.1%, 8th of 9 among similar funds.
- Its 5-year annualized return was +8.1%.
- Its worst full calendar year was 2023 (-7.5%); its best was 2024 (+23.1%).
- The deepest fall in its price history was 25.2% (Sep 12, 2022 to Oct 2, 2023), recovered by Aug 1, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.2% | — |
| 2025 | +16.5% | — |
| 2024 | +23.1% | +23.07% |
| 2023 | -7.5% | -7.47% |
| 2022 | +1.0% | +1.11% |
| 2021 | +17.4% | +17.33% |
| 2020 | — | -0.84% |
| 2019 | — | +24.92% |
| 2018 | — | +4.43% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Jun 2, 2020 |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 11.5% over that stretch · deepest drop along the way 20.1%, back to its old high 21.6 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.8400 | |
| 2025 | $5.0500 | +2.4% |
| 2024 | $4.9300 | +3.4% |
| 2023 | $4.7700 | +4.1% |
| 2022 | $4.5800 | +8.5% |
| 2021 | $4.2200 |
Living on VPU: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Aug 31, 2026, the fund held 68 securities; the ten largest made up 52.65% of assets.
| Holding | Weight | |
|---|---|---|
| NextEra Energy Inc | 11.75% | |
| Southern Co | 6.79% | |
| Duke Energy Corp | 6.39% | |
| Constellation Energy Corp | 5.79% | |
| American Electric Power Co Inc | 4.56% | |
| Dominion Energy Inc | 3.97% | |
| Sempra | 3.65% | |
| Entergy Corp | 3.33% | |
| Xcel Energy Inc | 3.23% | |
| Vistra Corp | 3.18% | |
| Exelon Corp | 3.06% | |
| Consolidated Edison Inc | 2.70% | |
| Public Service Enterprise Group Inc | 2.50% | |
| WEC Energy Group Inc | 2.37% | |
| Ameren Corp | 2.01% |
By country
United States 99.59%By asset type
Stocks 99.59%By sector
Sectors of the companies held, for the 80.5% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $52.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.27%, -2.36%, -4.41%.
How it works
VPU is the exchange-traded share class of Vanguard Utilities Index Fund. It tracks the MSCI US Investable Market Index (IMI)/Utilities 25/50, which covers US companies of all sizes in the utilities sector. The sector is defined by the Global Industry Classification Standard (GICS), a widely used system for sorting companies by industry. It includes electric, gas and water utilities, independent power producers, energy traders and companies that generate and distribute renewable electricity.
The fund uses replication. It aims to own all, or nearly all, of the index's stocks in about the same proportions as the index, and it must keep at least 80% of net assets in those stocks. Trading is light: the prospectus lists portfolio turnover of 6%. As of August 31, 2026, the fund held 68 companies, and the top 10 made up about 53% of assets. NextEra Energy led at 11.8%, followed by Southern Co. at 6.8% and Duke Energy at 6.4%. It also held four tiny total return swaps, contracts that pay the return of a stock, with a net weight near zero.
The fund is legally "nondiversified." That means it can put more of its money into a few companies than a diversified fund could. A bad stretch for one large holding can move the whole fund. So can sector-wide problems, such as wildfire liabilities or swings in commodity prices.
What it really costs
- VPU charges 0.09% a year, versus an average of 0.39% 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).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| VPU | $9 | $29 | $51 | $115 |
In a retirement portfolio
VPU pays quarterly dividends from US utility companies, with a 2.81% trailing yield as of October 27, 2026, though its price can still fall sharply.
Utilities have often moved apart from the broad market. VPU's beta, a measure of how closely it follows the market, was 0.13 for the year to October 27, 2026. That doesn't make it steady. The price history used here starts in June 2020, so it doesn't cover 2008. The prospectus shows a 14.1% loss in the first quarter of 2020. During the 2022 bear market, from January to October, the fund lost 11.5%. Its deepest drop, 25.2%, ran from September 2022 to October 2023, and it had fully recovered by August 2024. Its worst calendar year since 2018 was 2023, at −7.47%. Selling shares in stretches like these locks in losses.
The SEC's standard example puts costs at about $9 on $10,000 in the first year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting low-cost US utilities exposure: the 0.09% expense ratio is well below the 0.39% peer average, though FUTY and XLU charge slightly less.
- Income-focused holders comfortable with a 2.81% trailing yield, as of October 27, 2026, paid quarterly by companies like NextEra Energy, Southern and Duke.
- Investors wanting a sector that has moved loosely with the broad market, with a one-year beta of 0.13 as of October 27, 2026.
Look elsewhere if
- Investors needing broad diversification: it holds one sector, and its top 10 holdings made up about 53% of assets as of August 31, 2026.
- Investors who can't tolerate deep drops: it fell 25.2% from September 2022 to October 2023 and didn't recover until August 2024.
- Investors wanting utilities outside the US: nearly all assets are US stocks. iShares Global Utilities ETF (JXI), at 0.41%, is worth comparing.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| VPU this fund | — | 0.09% | $10.08B | -4.1% | +17.0% |
| FUTY Fidelity MSCI Utilities Index ETF | 98% | 0.084% | $2.32B | -4.0% | +17.0% |
| XLU Utilities Select Sector SPDR Fund | 89% | 0.08% | $23.11B | -0.4% | -7.8% |
| IDU iShares U.S. Utilities ETF | 89% | 0.39% | $1.46B | -2.5% | +17.2% |
| RSPU Invesco S&P 500 Equal Weight Utilities ETF | 69% | 0.4% | $538.5M | -1.5% | +18.0% |
| JXI iShares Global Utilities ETF | 62% | 0.41% | $322.8M | +3.4% | +18.7% |
| PUI Invesco Dorsey Wright Utilities Momentum ETF | 58% | 0.6% | $54.6M | -5.9% | +16.7% |
| ZAP Global X U.S. Electrification ETF | 56% | 0.5% | $461.7M | +3.6% | — |
Questions investors ask
Is VPU good for retirement income?
It depends on the rest of the portfolio. VPU pays dividends quarterly, and its trailing 12-month yield was 2.81% as of October 27, 2026, or about $5.20 per share. That income comes from US utilities such as NextEra Energy, Southern Co. and Duke Energy. The share price can fall sharply, though. VPU dropped 25.2% between September 2022 and October 2023 and didn't regain its peak until August 2024.
What's the difference between VPU and FUTY?
Very little in what they own. Fidelity MSCI Utilities Index ETF (FUTY) overlaps about 98% with VPU, based on the latest N-PORT reports. FUTY charges 0.084%, versus 0.09% for VPU. Returns as of October 27, 2026 were nearly identical: about −4% for one year and 17% a year over three years. VPU's fund had about $10.1 billion in assets across all share classes as of August 31, 2026. FUTY had $2.3 billion as of July 31, 2026.
What is the VPU expense ratio?
VPU's expense ratio is 0.09%, according to the prospectus filed December 19, 2025, and includes a 0.08% management fee. In the SEC's standard example, $10,000 is invested, earns 5% a year and is sold at the end of each period. Total costs would be about $9 after one year, $51 after five years and $115 after 10. VPU ranks 3rd cheapest of nine similar funds, which average 0.39%.
How much of VPU is in NextEra Energy?
NextEra Energy was VPU's largest holding at about 11.8% of assets as of August 31, 2026. Southern Co. (6.8%), Duke Energy (6.4%) and Constellation Energy (5.8%) came next, and the top 10 made up about 53%. The fund is legally nondiversified, so a few companies can drive its results. That concentration comes from the index it tracks, not from a manager's bet.
What is VPU's 10-year return?
VPU returned an average of 8.2% a year over the 10 years through December 31, 2024, according to its prospectus. Over five years it averaged 6.02% a year. Calendar-year results from 2018 to 2024 ranged from 24.92% in 2019 to −7.47% in 2023. More recent price returns were mixed: −4.1% for the year through October 27, 2026, but 17% a year over three years.