NEE - Vanguard Utilities ETF: The Current Low Rate Environment Should Support Its Higher Fund Price
ETF Overview
Vanguard Utilities ETF (VPU) owns a portfolio of U.S. utility stocks. The fund seeks to track the investment results of the MSCI US Investable Market Utilities 25/50 Index. Despite near-term headwind caused by COVID-19, most stocks in VPU’s portfolio will continue to invest in their capital projects to grow their rate bases and EPS in the next few years. The Federal Reserve’s decision to not increase interest rate at least until 2023 may help support these stocks’ valuations as investors continue to seek quality utility stocks that pay attractive dividends. Therefore,