"VDE is a pure-play on the U.S. energy sector, tracking the MSCI U.S. Investable Market Energy 25/50 Index and holding over 100 companies across the energy supply chain."
"The fund carries a net expense ratio of just 0.09%, making it one of the cheapest ways to own the sector outright, with a 2.3% dividend yield."
"VDE is up 38% year-to-date, driven by the disruption of shipping through the Strait of Hormuz, which handles about 31% of all seaborne oil flows globally."
VDE tracks the MSCI U.S. Investable Market Energy 25/50 Index, holding over 100 companies across the energy supply chain. With a low expense ratio of 0.09%, it offers a cost-effective way to invest in the sector. The fund is heavily weighted towards Exxon Mobil and Chevron, which together make up 37% of its total weight. Rising oil prices enhance cash flows for upstream producers, refiners, and midstream operators, contributing to VDE's 38% year-to-date increase, largely due to disruptions in the Strait of Hormuz.
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