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VGENX Vanguard Energy

VGENX is down 33% this year. Anybody investing?

Comments

  • Related News...time to invest? I'm thinking not just yet, though if Exxon maintain it's dividend payment these energy stocks may become the place investors "reach for yield" (9%-ish right now).

    Exxon Faces Historic Write down After Energy Markets Implode

  • As the one of the few places not part of the market's current irrational exuberance, and where there is "blood in the streets" it is time to buy oil and nat gas.

    Unless you believe ( incorrectly ) that no one will ever again fly in an airplane, drive an internal combustion engine automobile, or heat their house with anything other than solar or geothermal

    It is unclear if XOM will preserve the dividend as their strategy of increased capital investments hit the Covid Wall, but their are lots of other companies whose share price will rise as the cost of oil goes up when the economy gets back to more nearly normal.

    I would not bet on AMC surviving, and the future of the shopping mall is very uncertain, but PXD, EOG and CVX will survive until "alternative energy" takes over. This is at least ten years away, and probably longer.
  • I'm looking ay FENY myself but as bee mentioned not just yet.
  • How does FENY compare to XLE ?
  • beebee
    edited December 2020
    Per M*
    VGENX pays a Trailing Twelve Month yield of 5.07%
    XLE 12 month yield of 10.86%
    FENY 12 month yield of 9.78%

    With that said, investing an energy fund feels like I am investing in Sears.

    Part of me thinks I should, but part of me knows I shouldn't.
  • @carew388 - XLE and FENY perform nearly identically. FENY has an ER of 0.084% and XLE's ER is 0.13%
  • Mark thanks !
  • I'm still licking my energy wounds. A few months ago I sold out and moved the funds into SZC, a CEF that used to be energy focused but is now shifting to more of a mix that includes renewables and infrastructure. The discount was massive at the time (and still quite favorable) and so I thought it gave me the best shot to recoup some very serious losses in the energy space. Happy so far.
  • The upstream segment of energy got hammered this year. Looks like there may well be some daylight ahead for survivors, especially with vaccines on the way. So, attached my seatbelt and bought a little FANG in late October (YOC = 5.61%).
  • Who are the beneficiaries of cheap oil?

    Seems to me companies that use it as an input.

    Chemical companies = FSCHX
    Transportation companies = FSRFX
    Manufacturing / Industrial companies = FCYIX
    Utility companies = FSUTX
  • Just ran across this short M* Energy Industry report dated 11/10/20. It discusses some factors that impact energy sector investment prospects.

    STOCK STRATEGIST INDUSTRY REPORT
  • edited November 15
    Almost 4 years of no activity on this thread. As good a contrarian signal as any! I'm considering a small starter position because I believe energy is a good long term play. Also going to look for CEF's
  • PBR compares very favorably (in terms of total return) over the past decade vs XLE or XOM.. (not a reco, just an observation).
  • beebee
    edited November 16
    Yesterday, XLU (energy Utility companies) was one of the few "Green shoots" in the "Red Sea" of the Market.

    https://barchart.com/etfs-funds/quotes/XLU/overview

    Energy Sector and AI:
    utilities-backdoor-play-ai-trade



  • have held VGENX for ~20 yrs in IRA, as i wanted some active energy exposure via wellington.

    have actually done much better in energy w/ opportunistic taxable stock picks on a much larger scale. am assuming that some luck was involved and will keep VGENX as long as its inexpensive with an active manager i trust.
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