Launched on January 26, 2004, the Vanguard Utilities Index Fund ETF Shares (VPU Quick QuoteVPU - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Broad segment of the equity market.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.

Index Details

The fund is sponsored by Vanguard. It has amassed assets over $8.71 billion, making it one of the larger ETFs attempting to match the performance of the Utilities - Broad segment of the equity market. VPU seeks to match the performance of the MSCI US Investable Market Utilities 25/50 Index before fees and expenses.

The MSCI US Investable Market Utilities 25/50 Index comprises of stocks of large, mid-size, and small U.S. companies within the utilities sector.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 2.6%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Utilities sector -- about 99.9% of the portfolio.

Looking at individual holdings, Nextera Energy Inc (NEE) accounts for about 12.15% of total assets, followed by Southern Co/the (SO) and Duke Energy Corp (DUK).

The top 10 holdings account for about 52.07% of total assets under management.

Performance and Risk

Year-to-date, the Vanguard Utilities Index Fund ETF Shares has added about 6.56% so far, and was up about 16.63% over the last 12 months (as of 05/13/2026). VPU has traded between $171.33 and $205.87 in this past 52-week period.

The ETF has a beta of 0.62 and standard deviation of 15.67% for the trailing three-year period, making it a medium risk choice in the space. With about 70 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard Utilities Index Fund ETF Shares holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VPU is an outstanding option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

Fidelity MSCI Utilities Index ETF (FUTY) tracks MSCI USA IMI Utilities Index and the State Street Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Fidelity MSCI Utilities Index ETF has $2.39 billion in assets, State Street Utilities Select Sector SPDR ETF has $23.15 billion. FUTY has an expense ratio of 0.08%, and XLU charges 0.08%.

Bottom Line

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