If the Iran War Is Over, Is the Vanguard Energy ETF Still a Good Buy?
During the past 21 years, this energy ETF has been outperformed nearly 2-to-1 by the S&P 500 index.
If the Iran War Is Over, Is the Vanguard Energy ETF Still a Good Buy?
Overview
As of this writing, on June 14, the U.S. and Iran have reached a deal to end the Iran war and reopen the Strait of Hormuz. Oil prices and global stocks have been highly volatile since the U.S. and Israel attacked Iran on Feb. 28, with widespread damage to Middle East oil infrastructure and a shutdown of oil shipments through the vital Strait of Hormuz.
Higher oil prices in 2026 have been good for energy stocks. The Vanguard Energy ETF (NYSEMKT: VDE) has delivered 25% returns year to date. But this energy ETF has lost about 11% of its value since reaching an all-time high on March 27.
Details
If the Iran war is over, the world economy might be ready to find a new path forward. Stocks are rallying. The S&P 500 index is up 10.4% year to date, and has gained about 19% since hitting a 2026 low on March 30. But good news for the S&P 500 might be bad news for energy stocks. Ever since the end of March, the Vanguard Energy ETF and the S&P 500 have been going in opposite directions:
Source
Originally published at www.fool.com.
