XLE - VDE: Easy Blunt Force Exposure To Energy

2024-07-01 15:15:00 ET

Summary

• The energy sector is underowned, underappreciated, and relatively cheap compared to other sectors, with increasing consumption due to economic recoveries and global trade.
• Vanguard Energy Index Fund ETF Shares offers broad exposure to the energy sector with low cost and market-cap weighted holdings, including top companies like Exxon Mobil and Chevron.
• The VDE ETF can be a good way for investors to profit from the rebound of the energy sector, but risks include volatility, geopolitical tensions, regulatory changes, and the shift towards clean energy.

I’m bullish on Energy. It’s underowned, underappreciated, and relatively cheap compared to other sectors and even relative to its own history. The combination of economic recoveries from the pandemic slump, the re-emergence of industrial activities and global trade, and steady growth of major consumer economies have put energy consumption on a sharp upward trajectory....

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