Utilities Vanguard
VPU is Vanguard's Utilities ETF, designed to provide investors with exposure to companies in the utilities sector — principally electricity, gas, water and related services. The fund aims to track a broad utilities index and is typically heavier on established, dividend-paying firms that offer relatively stable cash flows compared with cyclical sectors. Investors often use VPU for income and defensive sector exposure within a diversified portfolio, though it is not immune to market moves. Key sensitivities include interest-rate changes (which can weigh on utility valuations), regulatory developments and commodity or fuel-cost pressures. Costs, yield and tracking error vary over time, and market capitalisation or holdings may change as the index and fund rebalance. This is general educational information and not personal advice; suitability depends on your goals, horizon and risk tolerance. Past performance is not a guide to future returns and capital is at risk.
Stock Performance Snapshot
Dividend
Utilities Vanguard's dividend yield of 2.61% is reasonable for investors seeking some income. If you invested $1000 you would be paid $26.10 a year in dividends (based on the last 12 months).
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Baskets Featuring VPU
Defensive Stocks: Could Labor Market Cooling Help?
The recent surge in jobless claims to a nearly four-year high suggests the U.S. labor market is cooling, increasing the likelihood of Federal Reserve interest rate cuts. This scenario could create opportunities in defensive sectors like consumer staples and utilities, which tend to remain stable during economic slowdowns.
Published: September 12, 2025
Explore BasketDefensive Plays For A Cooling Labor Market
The recent U.S. jobs report showed significantly slower growth than anticipated, signaling a potential economic slowdown. This situation could prompt the Federal Reserve to lower interest rates, creating a favorable environment for defensive stocks like consumer staples and utilities that offer stability and consistent dividends.
Published: August 5, 2025
Explore BasketNavigating The U.S. Manufacturing Contraction
The continued contraction of the U.S. manufacturing sector suggests a broader economic slowdown, prompting a potential shift in Federal Reserve policy. This environment could create opportunities in defensive stocks, such as those in the consumer staples and utilities sectors, which tend to be more resilient during economic downturns.
Published: August 3, 2025
Explore BasketWhy You’ll Want to Watch This Stock
Income-oriented exposure
VPU holds many dividend-paying utilities, which can support income-focused strategies — though dividends and yields can vary over time.
Regulation and costs
Utilities operate in regulated environments and face fuel and infrastructure costs, which can affect earnings; regulatory shifts may alter outlooks.
Portfolio diversifier
As a defensive sector, utilities may temper portfolio volatility; however, sector concentration and interest-rate sensitivity mean outcomes can differ.
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