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What Are Institutions Doing with Their Holdings in VPU?

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VPU: Institutional holdings

Let’s have a look at the Vanguard Utilities ETF’s (VPU) institutional holdings in this part. Institutional investors have increased their holdings in VPU in the last couple of months. Institutional investors’ percentage of float held in VPU rose from 40% on June 30, 2016, to 56% on September 11. Float refers to the number of shares available for trading.

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Are institutions bullish on VPU?

Since July 2016, VPU’s number of buyers rose a robust ~8%, while its number of sellers also rose 24%. The number of new buyers fell 8%, while sell-offs dipped 33%.

The number of institutional investors holding VPU in the last two months has risen 13% to 198. At the end of June 2016, the number of institutional investors holding VPU was 175.

FM Global Group, Bank of America, and Morgan Stanley were a few of the top institutions that had holdings in VPU as of September 11, 2016. They own 7%, 3%, and 2%, respectively, of VPU’s float.

Institutional investors have largely increased their positions in VPU since July 2016. VPU gives wider exposure to many mid-size utilities that XLU doesn’t. VPU has a comparatively higher weighting for gas and water utilities (AWK) (AWR), which generally have lower yields than electric ones. Due to this diversification, VPU yields nearly 100 basis points lower than that of XLU.

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