The article discusses the stagnant performance of the Vanguard Energy Index Fund ETF (VDE) in comparison to the soaring S&P 500, highlighting its lack of profitability over the last three years. It cautions against overly optimistic projections for the S&P 500 while suggesting that the energy sector, particularly VDE, may offer value opportunities moving into the second half of the decade. Potential catalysts such as low multiples, supportive political leadership, and industry efficiencies could spark renewed interest and growth in this overlooked sector.
The VDE is an underrated ETF for patient value investors willing to wait for catalysts to kick in.
Low multiples, a pro-energy President, and increased industry efficiency focus are potential catalysts that could power a VDE breakout.
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