Vanguard Energy ETF (VDE) - Good Time to Jump In?

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goblue100
Posts: 1731
Joined: Sun Dec 01, 2013 9:31 am

Re: Vanguard Energy ETF (VDE) - Good Time to Jump In?

Post by goblue100 »

Cornflakey wrote: Tue Jan 02, 2024 1:20 pm Been over a year since my last update. Though volatile, 2023 was generally flat for VDE, ending the year up just 2% while the broader market was on a tear. True to form, the position has actually gone backward since November 2022. Here is where we stand today:

Original investment: $9,229.88
Dividend Income: $2,406.76
Current value: $16,726
Net Position: $5,089

Stay away from those sector ETFs kids!
I've been holding on as well. Been a nice month. I have liked holding VDE as an energy/commodity play. Seems to do well in inflationary environments. However, I have to confess I'm looking to lighten up on this one after the recent runup.
"Confusion has its cost" - Crosby, Stills and Nash
Topic Author
Cornflakey
Posts: 44
Joined: Wed Jan 25, 2017 10:24 am

Re: Vanguard Energy ETF (VDE) - Good Time to Jump In?

Post by Cornflakey »

[/quote]

I've been holding on as well. Been a nice month. I have liked holding VDE as an energy/commodity play. Seems to do well in inflationary environments. However, I have to confess I'm looking to lighten up on this one after the recent runup.
[/quote]

I've been enjoying the ramp up this too! If we can get a meaningful drawdown on the market in general while VDE continues to perform - or even just maintains its current level - I'll dump the position entirely. Dream scenario would be VTI dropping 10%+ while VDE climbs to $150 and then jumping from one into the other. Not likely, but after five years in the position, willing to be patient!
Wedemeyer
Posts: 112
Joined: Mon Jan 25, 2021 10:14 pm

Re: Vanguard Energy ETF (VDE) - Good Time to Jump In?

Post by Wedemeyer »

I bought it in March 2020 for $33/share. It's up 300%+. I am holding it, it's basically paying a 12% dividend on my original price. It's an aberration to to my 4 etf approach, and <1% of my overall portfolio. I realize I was lucky.
260chrisb
Posts: 1290
Joined: Wed Apr 28, 2010 7:26 pm

Re: Vanguard Energy ETF (VDE) - Good Time to Jump In?

Post by 260chrisb »

Cornflakey wrote: Tue Apr 02, 2024 4:57 pm
I've been holding on as well. Been a nice month. I have liked holding VDE as an energy/commodity play. Seems to do well in inflationary environments. However, I have to confess I'm looking to lighten up on this one after the recent runup.
[/quote]

I've been enjoying the ramp up this too! If we can get a meaningful drawdown on the market in general while VDE continues to perform - or even just maintains its current level - I'll dump the position entirely. Dream scenario would be VTI dropping 10%+ while VDE climbs to $150 and then jumping from one into the other. Not likely, but after five years in the position, willing to be patient!
[/quote]

I'm going to trim some. It's become about 10% of my taxable portfolio which is too much and sadly I didn't add any at the lows of 2020. I don't know that I'd jump in now but who's to say it's not still a good long term holding. I'm taking profits on VDE soon.
Josh5000
Posts: 150
Joined: Sat Mar 02, 2024 3:51 pm

Re: Vanguard Energy ETF (VDE) - Good Time to Jump In?

Post by Josh5000 »

Whatever you do, please don't buy VGENX, which is a passive version of VDE. VGENX is lousy and lost a lot of money while VDE went up several hundred percent. This is the one case of passive investment, championed by Vanguard, that is beyond horrible. Money under the mattress is better than VGENX.

I dissected VDE and bought its strong holdings and skipped the management fee and lower dividend. If one cares to do the math, the VDE collective dividend is very conservative comparing the sum of the individual dividends of the holdings.
er999
Posts: 1377
Joined: Wed Nov 05, 2008 10:00 am

Re: Vanguard Energy ETF (VDE) - Good Time to Jump In?

Post by er999 »

Wedemeyer wrote: Tue Apr 02, 2024 5:54 pm I bought it in March 2020 for $33/share. It's up 300%+. I am holding it, it's basically paying a 12% dividend on my original price. It's an aberration to to my 4 etf approach, and <1% of my overall portfolio. I realize I was lucky.
Yes, but if you bought VTI at the lowest level in March 2020 you’d be up 2.2x. $33 looks like the absolute bottom of VDE so more ideal market timing vs stock selection. Also you should compare what you sold to buy VDE and what it would have returned in the meantime.
Wedemeyer
Posts: 112
Joined: Mon Jan 25, 2021 10:14 pm

Re: Vanguard Energy ETF (VDE) - Good Time to Jump In?

Post by Wedemeyer »

er999 wrote: Tue Apr 02, 2024 6:46 pm
Wedemeyer wrote: Tue Apr 02, 2024 5:54 pm I bought it in March 2020 for $33/share. It's up 300%+. I am holding it, it's basically paying a 12% dividend on my original price. It's an aberration to to my 4 etf approach, and <1% of my overall portfolio. I realize I was lucky.
Yes, but if you bought VTI at the lowest level in March 2020 you’d be up 2.2x. $33 looks like the absolute bottom of VDE so more ideal market timing vs stock selection. Also you should compare what you sold to buy VDE and what it would have returned in the meantime.
I used cash. 4X > 2.2X

Image
Topic Author
Cornflakey
Posts: 44
Joined: Wed Jan 25, 2017 10:24 am

Re: Vanguard Energy ETF (VDE) - Good Time to Jump In?

Post by Cornflakey »

Wedemeyer wrote: Tue Apr 02, 2024 7:08 pm
er999 wrote: Tue Apr 02, 2024 6:46 pm
Wedemeyer wrote: Tue Apr 02, 2024 5:54 pm I bought it in March 2020 for $33/share. It's up 300%+. I am holding it, it's basically paying a 12% dividend on my original price. It's an aberration to to my 4 etf approach, and <1% of my overall portfolio. I realize I was lucky.
Yes, but if you bought VTI at the lowest level in March 2020 you’d be up 2.2x. $33 looks like the absolute bottom of VDE so more ideal market timing vs stock selection. Also you should compare what you sold to buy VDE and what it would have returned in the meantime.
I used cash. 4X > 2.2X

Image
I congratulate you on your fortuitous timing! When the Covid crash hit in March 2020 I considered throwing new money into the pit to seize those low prices - instead I bought VIGAX (Large Growth Mutual Fund) in the $70s and have been DCAing into it ever since. Today it is north of $170 - not the great growth we've seen in VDE, but I'm comfortable holding VIGAX til retirement. The history of VDE shows that it spends more time down than up - my two cents would be to collect your winnings and shift over to something less volatile. But well played in any event!
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