VDE VS ERY

Exchange-Traded Funds (ETFs) have transformed the landscape of investment, offering investors a convenient and diversified way to gain exposure to various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs in the energy sector: VDE (Vanguard Energy ETF) and ERY (Direxion Daily Energy Bear 2X Shares). We will explore key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

VDE Vs ERY: Overview

VDE and ERY are two energy sector-focused ETFs that cater to different investment strategies within the energy industry. While VDE aims to track the performance of companies in the energy sector, ERY is designed to provide inverse exposure to the same sector, with a 2x leverage. Let's delve deeper into these ETFs to understand their unique characteristics and investment objectives.

VDE Vs ERY: Sectors and Top Holdings

VDE primarily focuses on energy companies engaged in activities such as oil and gas exploration, production, refining, and distribution. Its top holdings include well-known giants like Exxon Mobil, Chevron, and ConocoPhillips. On the other hand, ERY adopts a bearish stance by offering investors a way to profit from the decline in energy sector stocks. Its inverse leverage and top holdings such as ConocoPhillips and EOG Resources make it an attractive option for those anticipating downward trends in the energy sector.

VDE overlap VDE VS ERY

VDE Vs ERY: Capitalization and Investment Strategy

VDE's substantial Asset Under Management (AUM) underscores its popularity among investors seeking exposure to the energy sector's potential for growth. The ETF's strategy involves tracking an index of energy companies, allowing investors to participate in the sector's performance as a whole. ERY's investment strategy is the opposite, seeking to capitalize on the inverse performance of the energy sector with amplified returns. The contrast in capitalization and strategy highlights the diverse risk-reward profiles associated with these two ETFs.

VDE Vs ERY: Tracking Methods and Exposure

VDE tracks its target index using a sampling method, which involves holding a representative subset of securities from the index. This approach aims to closely mimic the index's performance. On the other hand, ERY's tracking involves seeking daily investment results that correspond to 200% of the inverse of the daily performance of the Energy Select Sector Index. This 2x leverage magnifies the impact of market movements, providing investors with the potential for enhanced returns during periods of decline in the energy sector.

Conclusion

VDE and ERY represent distinct investment approaches within the energy sector. While VDE offers exposure to the overall energy sector's growth potential, ERY provides a way to profit from its decline with a leveraged inverse strategy. Investors looking for insights into these ETFs' holdings, correlations, overlaps, and other relevant information can turn to ETF Insider—an intuitive and user-friendly app that equips them with the necessary tools to make informed investment decisions.

Disclaimer: This article is intended for informational purposes only and does not provide any investment advisory services. It's essential to conduct thorough research and consult with a qualified financial professional before making any investment decisions.

Sources:
Vanguard: https://investor.vanguard.com/etf/profile/VDE
Direxion: https://www.direxion.com/products/direxion-daily-energy-bear-2x-shares
Energy Select Sector Index: https://www.spglobal.com/spdji/en/indices/equity/sp-oil-gas-exploration-production/

ERY quote and analysis

Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the ERY Direxion Daily Energy Bear 2X Shares, access our dedicated page now.

Get started