(VDE) Vanguard Energy Shares - Ratings and Ratios

The Vanguard Energy Index Fund ETF Shares (NYSE ARCA:VDE) is an exchange-traded fund that tracks the performance of a specific index comprising stocks of U.S. companies within the energy sector, categorized under the GICS. By employing an indexing investment approach, the fund aims to replicate the target index by investing substantially all of its assets in the constituent stocks, holding each in proportion to its weighting in the index.

The energy sector is a critical component of the global economy, and this fund provides investors with diversified exposure to large, mid-size, and small-cap U.S. energy companies. As a non-diversified fund, VDEs performance is closely tied to the energy sectors overall performance, making it a targeted investment for those seeking to capitalize on trends within this specific industry.

Analyzing the funds technical data, we observe that the last price is $117.13, slightly above its 20-day and 50-day simple moving averages (SMA20 and SMA50) of $116.45 and $115.64, respectively. However, it is below its 200-day simple moving average (SMA200) of $122.19, indicating a potential longer-term downtrend. The Average True Range (ATR) of 2.21, or 1.89%, suggests moderate volatility.

From a fundamental perspective, the funds Assets Under Management (AUM) stand at $6,605.55 million USD, indicating a sizable presence in the market. This substantial AUM, combined with the funds indexing strategy, contributes to its liquidity and ability to track its target index closely.

Forecasting the funds performance based on both technical and fundamental data, we can anticipate that if the energy sector experiences a resurgence, driven by factors such as increased demand or supply constraints, VDE is likely to benefit. Technically, a break above the SMA200 at $122.19 could signal a bullish trend reversal, potentially driving the price towards the 52-week high of $134.71. Conversely, failure to break through this resistance level, coupled with a decline in the energy sectors fundamentals, could lead to a continued downtrend, testing the 52-week low of $105.87. Investors should closely monitor both the technical indicators and fundamental factors influencing the energy sector to make informed decisions regarding VDE.