What Is the Vanguard Utilities ETF, and Who Should Buy It?

The Vanguard Utilities ETF (VPU) offers low-cost exposure to 67 utility companies with a 2.52% dividend yield, but has significantly underperformed the S&P 500 over the past decade. While utilities can serve as a defensive hedge against tech downturns and benefit from AI data center demand, the author cautions that utilities have limited long-term upside due to heavy regulation, asset-intensive operations, and lower profit margins compared to tech stocks.