ETF Evaluator:
Vanguard Utilities ETF (VPU)
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(as of Jul 31)
Best Performing in Utilities Over the Last Year
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ETF Details
Vanguard Utilities ETF Overview
Vanguard Utilities ETF (VPU) is a passively managed Sector Equity Utilities exchange-traded fund (ETF). Vanguard launched the ETF in 2004.
The investment seeks to track the performance of the MSCI US Investable Market Index (IMI)/Utilities 25/50.
The fund employs an indexing investment approach designed to track the performance of the index, an index made up of stocks of large, mid-size, and small U.S. companies within the utilities sector, as classified under the GICS. The Advisor attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. The fund is non-diversified.
About Vanguard Utilities ETF (VPU)
There are 2 members of the management team with an average tenure of 1.36 years: Chris Nieves (2025) and Jena Stenger (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: MSCI US Investable Market 2500 GR USD index with a weighting of 100% and MSCI US IMI/Utilities 25-50 GR USD index with a weighting of 100%. Vanguard Utilities ETF has 75 securities in its portfolio. The top 10 holdings constitute 52.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Vanguard Utilities ETF is part of the Equity global asset class and is within the Sector Equity ETF group. Vanguard Utilities ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.2% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard Utilities ETF has 0.4% of the portfolio in cash.
Assets Under Management
The fund has $8 billion in total assets, which is above the $2 billion average for the Utilities category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VPU Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Utilities ETF expense ratio is low compared to funds in the Utilities category. Vanguard Utilities ETF has an expense ratio of 0.09%, which is 80% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Utilities ETF has a portfolio turnover rate of 6%, which indicates that it holds its assets around / 0.2 years. By way of comparison, the average portfolio turnover is 23% for the Utilities category.
Recently, in the month of June 2026, Vanguard Utilities ETF returned 2.3%, which earned it a grade of D, as the Utilities category had an average return of 2.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Vanguard Utilities ETF has a trailing yield of 2.64%, which is above the 2.07% category average.
The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard Utilities ETF Grades
Year to date, the ETF has returned 7.3%, 3.9 percentage points worse than the category, which translates into a grade of F. The fund has returned 14.0% over the past year (grade of F), 14.7% over the past three years (grade of F) and 10.5% per year over the past five years (grade of F) and 8.8% per year over the past 10 years (grade of D).
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VPU Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VPU Return (NAV) | 2.3% | -0.5% | 14.0% | 14.7% | 10.5% | 8.8% |
| VPU Return (Price) | 2.3% | -0.6% | 13.9% | 14.7% | 10.5% | 8.8% |
| NAV +/- Price Return | 0.009% | 0.111% | 0.082% | 0.007% | 0.007% | 0.009% |
| Utilities Avg | 2.6% | 1.9% | 19.0% | 16.8% | 11.8% | 9.2% |
| VPU Grade (NAV) | D | D | F | F | F | D |
| +/- Category (NAV) | -0.3% | -2.4% | -5.0% | -2.1% | -1.3% | -0.4% |
| VPU Tax-Cost Ratio | na | na | 0.8% | 0.8% | 0.9% | 0.9% |
VPU Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VPU Return (NAV) | 7.3% | 16.4% | 23.1% | -7.5% | 1.1% | 17.3% | -0.8% | 24.9% | 4.4% | 12.5% | 17.5% |
| VPU Return (Price) | 7.2% | 16.5% | 23.1% | -7.5% | 1.0% | 17.4% | -0.8% | 24.9% | 4.4% | 12.5% | 17.6% |
| NAV +/- Price Ret | -0.015% | 0.005% | -0.000% | -0.001% | -0.065% | 0.002% | -0.098% | -0.2% | -1.4% | -0.4% | 0.4% |
| Utilities Avg | 11.2% | 18.8% | 24.3% | -4.2% | 1.2% | 16.3% | 0.6% | 22.8% | 4.8% | 11.0% | 16.2% |
| VPU Grade (NAV) | F | D | D | F | C | C | D | B | C | B | B |
| +/- Category | -3.9% | -2.4% | -1.3% | -3.3% | -0.1% | 1.1% | -1.4% | 2.1% | -0.3% | 1.5% | 1.3% |
| Risk Measures | |
| Beta: | 0.50 |
| R-Squared: | 18% |
| Standard Deviation: | 14.9% |
| Category Risk Index: | 0.99 |
| Category Risk Rating: | Above Average |
| Total Risk Index: | 1.23 |
| Total Risk Rating: | Average |
| Portfolio Characteristics | |
| Yield: | 2.6% |
| Total Assets: | $ 10,690 Mil |
| Share Class Assets: | $ 8,669 Mil |
| Turnover: | 6.0% |
| Expense Ratio: | 0.09% |
| Index Fund: | Yes |
| Index Tracked: | MSCI US Investable Market 2500 GR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Quarterly |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 1.4 years | |||
| Average Tenure: 1.4 years | |||
| Managers (Year): Nieves Chris (2025), Stenger Jena (2025) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 75 |
| % in Top 10 Holdings: | 52.3% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 99.2% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.4% |
| Cash: | 0.4% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Vanguard |
| Phone Number: | 866-499-8473 |
| Website: | www.vanguard.com |
| Inception Date: | January 26, 2004 |
Expenses and Fees
| Expense Ratio (%): | 0.09% (Rating: Low) |
| Category Average Expense Ratio (%): | 0.46% |
