VDE: VANGUARD ENERGY INDEX FUND ETF SHARES
What this ETF is trying to do
The Vanguard Energy Index Fund ETF (VDE) is designed to track the energy sector. It holds a variety of companies involved in energy production and services. Based on the Top Holdings data from October 7, 2026, the fund is heavily weighted toward large companies like ExxonMobil Holdings Corp (21.82%) and Chevron Corp (14.03%).
What the numbers show
As of October 6, 2026, the current price of one share is $178.54.
When looking at performance, it is important to distinguish between "price return" and "total return." Price return only measures the change in the share price. Total return includes both the share-price change and the distributions paid out to investors.
• Year-to-Date (YTD): The price return is 41.79%, while the total return is 44.43%.
• One Year: The price return is 41.49%, and the total return is 45.30%.
• Three Year: The price return is 48.70%, and the total return is 62.68%.
To put the one-year change in perspective, the estimated price from roughly one year ago was $126.19. If an investor had put $10,000 into the fund based on that estimated price, the value of those shares alone (not including distributions) would have grown by approximately 41.49%.
Income and distribution explanation
This ETF pays out cash distributions, usually on a quarterly basis. Over the last 12 months, it has made 4 payouts totaling $4.08 per share. This results in a distribution yield of approximately 2.29%.
It is important for beginners to remember that a distribution yield is not the same as a total return. While distributions provide cash income, they do not guarantee that the original investment (the principal) will stay the same or grow.
NAV erosion explanation
"NAV erosion" happens when the underlying value of an ETF's assets declines over time, often causing the share price to drop even if the fund pays high distributions.
For VDE, the erosion-risk score is 100, and the erosion severity is labeled as "good." The data states "No price erosion detected," and the severe erosion-risk flag is false.
Pros
• Strong Growth: The fund has shown significant total returns over the last one, three, and five years.
• Low Erosion Risk: The erosion-risk measurements indicate a healthy price trend.
• Income: It provides regular quarterly cash distributions.
Cons
• Sector Concentration: Because it focuses only on energy, it is tied to the performance of that specific industry.
• Moderate Yield: The distribution yield is relatively low compared to some specialized income funds.
Beginner takeaway
VDE provides exposure to the energy sector. While it offers a modest distribution yield for income, its primary recent growth has come from an increase in share price. Always look at the total return rather than just the yield to see the full picture of an investment's performance.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | EXXONMOBIL HOLDINGS CORP | XOM | 21.82% |
| 2 | CHEVRON CORP | CVX | 14.03% |
| 3 | CONOCOPHILLIPS | COP | 5.99% |
| 4 | MARATHON PETROLEUM CORP | MPC | 4.06% |
| 5 | VALERO ENERGY CORP | VLO | 3.98% |
| 6 | PHILLIPS 66 | PSX | 3.67% |
| 7 | SLB LTD | SLB | 3.36% |
| 8 | WILLIAMS COMPANIES INC | WMB | 3.36% |
| 9 | EOG RESOURCES INC | EOG | 2.89% |
| 10 | BAKER HUGHES CO CLASS A | BKR | 2.31% |