Portfolio Management
With oil and gas prices plummeting, energy stocks have been in the spotlight. Prices have been dropping since June as supply increases. On November 27, the Organization of Petroleum Exporting Countries (OPEC) met to determine whether to cut supply or not. It was reported that the supply will be maintained. The big oil players including Exxon (XOM), Chevron (CVX) and Halliburton (HAL) have been on wait during this process. This week, we will be focusing on this sector by making the Vanguard Energy Fund (VGENX) the fund of the week for December 3.
Inside the Fund
The Vanguard Energy Fund fund was launched in 2001 and is managed by a team of portfolio managers. The fund currently has approximately $10.6 billion in assets under management (AUM).
The fund is almost entirely invested in the energy industry and provides exposure to many of the biggest energy-focused companies.
Historical Performance
| 2010 | 2011 | 2012 | 2013 | YTD |
|---|---|---|---|---|
| 13.49% | -1.68% | 2.73% | 18.22% | -11% |
The Vanguard Energy Fund’s Largest Holdings
Over a quarter of the fund’s portfolio is in its top five holdings. Each of these holdings are down YTD.
| Symbol | Stock | Portfolio Weight | YTD Performance |
|---|---|---|---|
| XOM | Exxon | 8.30% | -7% |
| CVX | Chevron | 4.90% | -9% |
| RDS-A | Royal Dutch Shell | 4.80% | -3% |
| SLB | Schlumberger | 4.21% | -5% |
| PXD | Pioneer Natural Resources | 3.49% | -9% |
The Bottom Line
For investors that are bullish on the energy industry, this mutual fund may be a good, and more diverse option instead of choosing individual stocks.
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