VDE vs. VPU: Which Vanguard ETF Is a Better Way to Invest in Rising Energy Prices?

Yahoo Finance ·

One surprising side effect of the artificial intelligence (AI) boom has been the rise of investor demand for stocks in the energy and utility sectors. As major tech companies build massive AI data centers, they need a lot of power to run them. That has helped drive a run-up in share prices of energy stocks and utility companies. The recent tensions in the Middle East during the lead-up to the Iran war also contributed to higher oil prices and higher share prices for oil stocks. But what does the future hold for these fundamentally important industries? Is now still a good time to buy? Even though utilities and energy companies are essential for powering our vehicles and keeping the lights on, they don't always outperform the rest of the S&P 500 index. If you're bullish on the future of AI and other economic growth factors creating higher demand for energy , then buying exchange-traded funds (ETFs) like the Vanguard Energy ETF ( VDE +0.74% ) or the Vanguard Utilities ETF ( VPU +2.15% ) could be a good move. Let's look at these two popular Vanguard ETFs and see if they might be worth including in your portfolio.

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