Better Energy Sector ETF: Vanguard's VDE Targeting Traditional Oil and Gas Giants vs. Invesco's Solar-Focused TAN
VDE's 5-year gains crushed TAN's despite lower volatility, while its 0.09% fee dwarfs the solar fund's 0.7% expense ratio.
Overview
The Vanguard Energy ETF (NYSEMKT:VDE) offers broad, low-cost exposure to traditional fossil fuel companies, while the Invesco Solar ETF (NYSEMKT:TAN) provides a high-conviction, specialized bet on the global solar power industry.
Energy investing is not a monolith. While the Vanguard fund tracks a broad basket of traditional U.S. energy producers, the Invesco fund targets a specific, high-growth renewable niche. Comparing these two funds highlights the massive trade-offs between diversified fossil-fuel exposure and the high-volatility, thematic world of solar technology.
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.