Better Energy Sector ETF: Vanguard's VDE Focused on Oil and Gas vs. the iShares ICLN Targeting Clean Energy
VDE's traditional oil holdings delivered 46.8% returns over one year, while ICLN's renewable focus saw deeper volatility and a 57.2% maximum drawdown.
Overview
The Vanguard Energy ETF (NYSEMKT:VDE) provides low-cost exposure to traditional U.S. oil and gas giants, while the iShares Global Clean Energy ETF (NASDAQ:ICLN) focuses on international renewable energy and sustainable power solutions.
These two funds represent opposite ends of the energy spectrum. One relies on the established cash flows of U.S. fossil fuel majors, while the other bets on the long-term growth and transition toward wind, solar, and other clean technologies globally. While both target the energy sector, their performance profiles have diverged significantly as market sentiment shifted between established producers and emerging green businesses.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.