Vanguard Energy ETF heavily weighted towards ExxonMobil and Chevron

From Nasdaq: 2025-03-05 05:21:00

Investing in ETFs can provide diversification across a market or sector, but not all ETFs are as diversified as they seem. The Vanguard Energy ETF holds 112 energy stocks, with ExxonMobil and Chevron comprising over a third of the total. This concentration could impact the ETF’s returns, so investors should evaluate this factor before investing. On the other hand, ExxonMobil and Chevron are industry leaders, making the ETF a good choice for energy exposure.

ExxonMobil leads the oil industry in key financial metrics, including earnings and cash flow. The company has achieved significant cost savings and plans to add $20 billion in earnings and $30 billion in cash flow by 2030. Chevron, while not as profitable as Exxon, still boasts strong financials and expects meaningful growth in the coming years. Both companies are key holdings in the Vanguard Energy ETF, making it a solid choice for energy stock exposure.

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Read more at Nasdaq: This Top Energy ETF Holds 112 Stocks. But These 2 Make Up Over 33% of Its Holdings.