1 No-Brainer Energy Vanguard ETF to Buy Right Now for Less Than $1,000
The Motley Fool
by newsfeedback@fool.com (David Dierking)February 26, 2026
AI-Generated Deep Dive Summary
The energy sector has been the standout performer in 2026, with the Vanguard Energy ETF (VDE) leading the charge. Through February 20, VDE is up an impressive 23%, far outpacing the S&P 500's modest 1% return so far this year. This strong performance is driven by rising oil prices, which have climbed sharply and are at their highest levels since last summer. Geopolitical tensions and global energy sanctions continue to create supply risks, potentially keeping oil prices elevated for the foreseeable future.
Energy stocks are also trading at a relatively low multiple of 19 times earnings compared to other sectors in the S&P 500. This makes them an attractive option for investors seeking undervalued opportunities in a market that is shifting toward value-oriented plays. Companies in the energy sector, particularly those with dependable cash flows, are becoming increasingly appealing as investors look for stability and growth potential.
The current environment presents several catalysts for continued energy sector gains. Oil prices remain a key driver of stock performance, and ongoing geopolitical risks could further support higher prices. Additionally, the sector's valuation remains attractive, making it a potentially lucrative investment for the remainder of 2026 and beyond.
For investors looking to capitalize on these trends without assuming individual stock risk, the Vanguard Energy ETF offers a diversified approach to energy exposure. As a broad-based ETF tracking the performance of major energy companies, VDE provides a cost-effective way to participate in the sector's upside while mitigating company-specific risks. With its focus on value and stability, energy looks like a solid addition to any portfolio seeking long-term growth.
Given the combination of rising oil prices, geopolitical risks, and attractive valuations, the energy sector is well-positioned to continue its upward trajectory. For investors with a medium- to long-term perspective, the Vanguard Energy ETF stands out as a no-brainer choice for accessing this dynamic and potentially profitable sector.
Verticals
financeinvesting
Originally published on The Motley Fool on 2/26/2026