VDE ETF surges 38% in 2024 as oil prices climb amid Strait of Hormuz disruptions.

The Vanguard Energy Index Fund ETF (VDE) has risen 38% year-to-date, driven by oil prices jumping from $57.26 to above $90 per barrel due to shipping disruptions in the Strait of Hormuz, which handles about 31% of global seaborne oil. VDE, focused on the U.S. energy sector, benefits from rising crude prices that boost earnings across upstream producers, refiners, and midstream operators. Exxon Mobil and Chevron, the fund's largest holdings, have gained 35% and 33% respectively, reflecting the fund's strong performance. However, the fund's gains come with volatility risks tied to geopolitical events and oil market fluctuations, making it suitable for investors seeking tactical exposure to energy with low costs and broad sector coverage.