Vanguard boosts investor sentiment with efficient ETFs

Vanguard, a leading investment management company, offers over 60 equity-focused Exchange Traded Funds (ETFs) covering various investment styles and themes. The management costs of these funds range from 0.03% to 0.22%, making them particularly attractive for cost-conscious investors. Although many of Vanguard's dividend-focused funds represent a solid source of passive income, not all have shown impressive gains this year. A closer look at three high-yielding Vanguard ETFs reveals potential for patient investors. Vanguard's ETFs cover all 11 GICS sectors of the stock market. Among the top performers are the Vanguard Energy ETF and the Vanguard Utilities ETF, with yields of 3.3% and 2.9%, respectively. Both ETFs have identical costs, with an expense ratio of 0.1%, and show a high concentration in their largest positions. The Vanguard Energy ETF focuses about 50% on five key companies in the energy sector, while 36.5% of the Vanguard Utilities ETF is invested in its largest positions. Amid the volatility in the oil and gas industry, the focus should be on stable companies that offer steady dividend payments and are financially well-positioned. ExxonMobil and Chevron are outstanding examples, with impressive dividend increases over several decades. In the utility sector, ETFs also prove useful. Approximately 63% of the Vanguard Utilities ETF is invested in electricity providers, including NextEra Energy and Southern Company, which effectively mitigate geographic risks. In summary, the Vanguard Energy ETF and the Vanguard Utilities ETF are excellent options for investing in these sectors. However, currently the Vanguard High Dividend Yield ETF might be an even more sensible investment decision.