Vanguard Energy ETF stands to benefit from a rapid rise in energy consumption by artificial intelligence data centers. According to BloombergNEF’s latest forecast, data-center power demand will reach 106 gigawatts by 2035, a 36% increase from the prior outlook just seven months earlier. TechCrunch data show that over the next decade the average new facility will draw well over 100 megawatts, with nearly 25% exceeding 500 megawatts and a few surpassing 1 gigawatt. This surge in large-scale deployments creates a robust growth runway for integrated oil producers, pipeline operators and service contractors within VDE’s portfolio.

Vanguard Energy ETF charges an expense ratio of just 0.09%, meaning an annual cost of $9 on every $10,000 invested. The fund also offers a dividend yield of approximately 3%, one of the highest among broad energy benchmarks. For investors seeking a low-cost vehicle to capture upstream and midstream energy returns while earning a reliable income stream, these fee and distribution characteristics remain compelling over a multi-year investment horizon.

In the third quarter, Cwm LLC increased its position in Vanguard Energy ETF by 282.8%, acquiring 8,137 additional shares to reach a total holding of 11,014 shares valued at $1.386 million. Other major institutional investors also grew their stakes: The Manufacturers Life Insurance Company added 71,067 shares for a total of 860,760 shares valued at $102.5 million; Beacon Capital Management boosted its position by 1,631.3% to 754,276 shares ($89.8 million); BNP Paribas Financial Markets expanded by 23,247.2% to 353,477 shares ($42.1 million); SCS Capital Management increased holdings by 2.7% to 344,174 shares ($41.0 million); and Corient Private Wealth grew its stake by 90.8% to 307,070 shares ($36.6 million). These inflows coincide with VDE’s market capitalization of $7.39 billion, a price-to-earnings ratio near 14.1 and a beta of 0.77, underlining growing confidence in the energy sector’s medium-term outlook.