Key facts
- The Vanguard Utilities ETF (VPU) tracks the MSCI US Investable Market Utilities 25/50 Index.
- It offers exposure to companies in the electricity, gas, and water industries.
- The ETF is considered for investors seeking stable income and diversification.
- Utilities are often less sensitive to economic downturns.
The Vanguard Utilities ETF (VPU) is an exchange-traded fund designed to provide investors with exposure to the utilities sector. It specifically tracks the performance of the MSCI US Investable Market Utilities 25/50 Index. This sector includes companies engaged in the provision of electricity, natural gas, and water services. Investors who are looking for a stable source of income and wish to diversify their portfolios into a sector that is typically considered defensive might find this ETF appealing. The rationale behind this is that utility companies often demonstrate resilience and are less susceptible to significant downturns during periods of economic contraction.