To The Moon

Please find and follow my YT channel (nerdbull1669) for Daily SG and US Stock Watchlist. Do follow me as I share quality stock pick for Daily Watchlist. After OPEC Plus announce the cut in production for crude oil, the oil and energy sector stocks went up. But it did not continue yesterday. Do note that United States (who is Non-OPEC member) is exporting around 4.2% of World Total (from 2021 data). I would like to look invest in most of the energy stocks in U.S., but it would be pretty difficult to track each of them in my portfolio. Hence, I decide to look for an Equity Energy ETF which can cover most of the major Oil producers in the U.S. U.S. produce oil for internal consumption as well as export. Will we see export percentage increase from U.S. as a result of reduction in production by OPEC+? Why I choose Vanguard Energy ETF (VDE) I have looked at most of the equity energy ETF and found $Vanguard Energy ETF(VDE)$ to fit my criteria. I am looking for an ETF with low expense ratio, and they can cover mostly U.S. Oil producers. Vanguard Energy ETF (VDE) Dividend Yield The last dividend date for Vanguard Energy ETF (VDE) was on 24 March 2023, and the yield was 4.29%. Look at the 2022 dividend payout, it has been steady increasing for 2022, from $0.82 to $1.36. Vanguard Energy ETF (VDE) Expense Ratio VDE expense ratio is low at 0.10% for an equity ETF. Though the risk/reward scale is high(5), but I believe it is compensated by the good dividend yield of 4.29% (latest). Top 10 Holdings of VDE Here is the Top 10 Holdings of VDE, it consist of the Top producers in U.S. like XOM, CVX, COP. How did these holdings fare recently? As of 05 Apr 2023 trading, we can see that COP, $Marathon(MPC)$ , $Phillips 66(PSX)$ , $Valero(VLO)$ , XOM. 5 out of the Top 10 holdings have gained more than 1%. So I would think that we could take advantage of the Oil output cut to invest in this ETF to benefit from the price upward movement, plus the low expense ratio. Price Movement of Vanguard Energy ETF VDE over last 5 trading days Looking at the 5 days chart for VDE, apparently they have benefitted from the announcement of the oil output cut, the price gapped up from below $114 to above $118 on Monday (03 Apr). The price have stayed above $115 since Monday (03 Apr). I would expect it to have an upward move next week. (10 Apr to 14 Apr). Summary The reason why I like Vanguard Energy ETF (VDE), the holdings have both oil and natural gas producers, on top of low expense ratio and reasonable 4% plus dividend yield. This would be important because when producers extract fossil fuels from earth, part of it will become crude oil, and some part will become natural gas. We might argue that energy price increase might bring us closer to recession. I think as investors (retail), we need to be able to find opportunities which can help us to maximize our return in the long run. Appreciate if you could share your thoughts in the comment section on your view whether you think now is a good time to look at and invest in Equity Energy ETF. Do like, share and comment on this article if you find this trading thought useful. @TigerStars appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts. Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.