Vanguard is an investment management company that offers a wide range of exchange-traded funds (ETFs). These ETFs provide investors with a convenient and cost-effective way of gaining exposure to diverse industries. Today, we have focused on two Vanguard ETFs – (VBR) and (VDE) – with more than 10% upside potential projected by analysts over the next twelve months.
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Let’s take a look at what Wall Street thinks about these two ETFs.
Vanguard Small Cap Value ETF (VBR)
The VBR ETF seeks to track the performance of the CRSP U.S. Small Cap Value Index. The ETF attempts to replicate the target index by holding each stock in about the same proportion as its appears in the index. VBR has $28.23 billion in assets under management (AUM) and has a low expense ratio of 0.07%.
Importantly, the VBR ETF has a dividend yield of 2.11%, which is above the sector’s average of 1.66%. Further, the ETF has returned 9.93% in the past six months.
Overall, the VBR ETF has a Moderate Buy consensus rating. Of the 855 stocks held, 518 have Buys, 291 have a Hold rating, and 46 have a Sell. The analysts’ average price target on the VBR ETF of $211.06 implies 11.54% upside potential from the current levels.
Vanguard Energy ETF (VDE)
The VDE ETF seeks to track the performance of the MSCI U.S. Investable Market Index (IMI)/Energy 25/50. This index is made up of large, mid-size, and small U.S. companies within the energy sector. The VDE ETF aims to hold each stock in approximately the same proportion as it appears in the index. It has $8.46 billion in AUM and an expense ratio of 0.1%.
Interestingly, the ETF has a dividend yield of 3.01% and compares favorably with the sector average of 1.66%. Also, the VDE ETF has generated a return of 14.56% over the past six months.
On TipRanks, VDE has a Moderate Buy consensus rating. This is based on the consensus rating of each stock held in the portfolio. Of the 117 stocks held, 91 have Buys, 22 have a Hold rating, and four stocks have a Sell rating. The analysts’ average price target on the VDE ETF of $152.69 implies a 19.93% upside potential from the current levels.
Concluding Thoughts
The Vanguard ETFs offer several benefits, such as exposure to large companies, low cost, and long-term capital appreciation opportunities. Furthermore, these ETFs have better liquidity, allowing investors to buy and sell shares conveniently.
