Dec 3, 2018

VDE: Why This Isn't A Buying Opportunity

Summary: Brent oil has tumbled from more than $86 to less than $60 a barrel in less than two months and its future continues to look uncertain. The Vanguard Energy ETF has $3.8Bn of assets under management and comes with a low expense ratio of just 0.10%. The large-cap, well-established energy companies, such as Exxon Mobil and Schlumberger, account for a vast majority of the fund’s assets. But Vanguard Energy ETF also has some exposure to small cap companies with weak balance sheets.

The future of oil prices continues to look uncertain. At this time, investors should stay cautious and selective while buying exchange traded funds and stocks. The Vanguard Energy ETF (VDE) is one of my favorite funds that comes with a low expense ratio and gives investors exposure to more than a hundred energy stocks.

The fund has a vast portfolio which includes large-cap as well as medium and … read full article at Seeking Alpha.