Last week brought even more stock market weakness and volatility as the selloff became self-perpetuating, with nobody mid-day on Wednesday wanting to be the last guy left holding equities. Hedge funds and other weak holders exacerbated the situation. But the extreme volatility and panic selling finally led some bulls (along with many corporate insiders) to summon a little backbone and buy into weakness, and the market finished the week on a high note, with continued momentum likely into the first part of this week.
Despite concerns about global economic growth and a persistent lack of inflation, especially given all the global quantitative easing, fundamentals for U.S. stocks still look good, and I believe this overdue correction ultimately will shape up to be a great buying opportunity -- i.e., there is no need for investors to be afraid of the very thing they have been hoping for. Also, the charts are
Most people are dependent on some form of energy in one way or another. Vanguard created its Vanguard Energy ETF (NYSEARCA:VDE) 10 years ago last month to track some of the companies profiting from this dependency. It holds companies that are in the MSCI US IMI Energy 25/50 index. The research below will show how well it has done in its first 10 years.
Looking at the Yahoo graph below VDE's total return was 150.19%. This comes to an annual return of 11.48%. This alone doesn't tell us if this was a good return unless we compare it to other energy ETFs. The graph also includes the largest ETF, the Energy Select Sector SPDR ETF (NYSEARCA:XLE), and the iShares U.S. Energy ETF (NYSEARCA:IYE). XLE has over $6 billion more assets than VDE. Its total return was 153.57% and its annual return was 11.78%. IYE is the fourth largest ETF and