Vanguard Utilities ETF Emerges as Key Play Amid Surging U.S. Electricity Demand
The U.S. utilities sector, long overshadowed by energy efficiency gains, is poised for a structural resurgence. Electricity demand—stagnant for two decades—is projected to grow at 2.4% annually through 2030, marking the fastest expansion since the 1990s internet boom. Three catalysts drive this shift: widespread electrification of vehicles and industrial equipment, Trump-era tariff policies accelerating domestic manufacturing, and AI-driven data center power consumption.
Market reactions are already visible. The utilities sector has outperformed the S&P 500 by 10 percentage points year-to-date, with Vanguard Utilities ETF (VPU) gaining traction as a strategic holding. This convergence of macro trends presents a rare investment window reminiscent of early-stage infrastructure plays.
