|Bid||38.75 x 900|
|Ask||40.00 x 900|
|Day's Range||39.64 - 40.28|
|52 Week Range||33.43 - 40.30|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.28|
|Expense Ratio (net)||0.08%|
The utilities sector is one of the smallest sector weights in the S&P 500, but it is still beloved by conservative investors seeking higher dividend yields and lower volatility. Fortunately, there are dozens of ETFs dedicated to this sector.For tactical traders and investors looking for entry points into utilities ETFs, this week is an interesting time for the sector. This week, over 43% of the S&P 500 Utilities Index reports first-quarter earnings, meaning this could be an eventful span for an array of utilities ETFs. The earnings spotlight dims somewhat next week for utilities, but more than 18% of the aforementioned utilities gauge reports earnings during the week of May 6.To this point in earnings seasons, "six of the eleven sectors are reporting year-over-year growth in earnings, led by the Health Care and Utilities sectors," said FactSet.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 A-Rated Stocks That Are Under $10 The Utilities Select Sector SPDR (NYSEARCA:XLU) is the largest utilities ETF and a fine option in its own right, but let's explore some other utilities ETFs here. Fidelity MSCI Utilities ETF (FUTY)Source: Shutterstock Expense ratio: 0.084% per year, or $8.40 on a $10,000 investment.While the aforementioned XLU is the largest utilities ETF, the Fidelity MSCI Utilities ETF (NYSEARCA:FUTY) is the cheapest fund dedicated to this sector. FUTY tracks the MSCI USA IMI Utilities Index and has nearly $635 million in assets under management. FUTY holds 67 stocks, giving it a deeper bench than some rival, large-cap utilities ETFs.This utilities ETF's top 10 holdings combine for nearly 53% of the fund's weight and include Nextera Energy (NYSE:NEE), Duke Energy (NYSE:DUK) and Dominion Energy Inc. (NYSE:D). Fidelity clients can realize addition cost benefits with FUTY because this utilities ETF is part of the firm's expansive commission-free lineup."Utilities are usually considered a safe choice with stable returns, unlike the tech companies that have been driving most of the stock market's growth over the past decade," reports Evie Liu for Barron's. "But as the market pulled back significantly last year, even steady gains can become top-notch performance."S&P Capital IQ has a Marketweight rating on the utilities sector while Ned Davis Research has an Overweight rating on the group. Invesco DWA Utilities Momentum ETF (PUI)Source: Shutterstock Expense ratio: 0.60%Utilities ETFs are usually seen as low beta fare, but there are ways to bring some spice to the group. That includes the Invesco DWA Utilities Momentum ETF (NASDAQ:PUI), which eschews the cap-weighted methodology associated with many traditional utilities ETFs.PUI, which carries a four-star Morningstar rating, follows the Dorsey Wright Utilities Technical Leaders Index. That index "is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security's performance in a given universe over time as compared to the performance of all other securities in that universe," according to Invesco. * 8 Stocks to Buy Whose Products America Loves The average market value of PUI's 30 holdings is $16.88 billion, putting it at the lower end of utilities ETFs by that metric. Nearly 61% of this utilities ETF's holdings are classified as large- and mid-cap value stocks. None of the fund's holdings exceed weights of 3.90%, which is also low compared to traditional utilities ETFs. First Trust Utilities AlphaDEX Fund (FXU)Source: Shutterstock Expense ratio: 0.63%Somewhat quietly, the First Trust Utilities AlphaDEX Fund (NYSEARCA:FXU) is home to over $908 million in assets under management, making it the third-largest US-listed utilities ETF. Like the aforementioned PUI, FXU is a smart beta utilities ETF, not a cap-weighted fund. FXU, which soon turns 12 years old, tracks the StrataQuant Utilities Index.Components in FXU's underlying index are measured based "on growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets," according to First Trust.Even with its unique methodology, this utilities ETF has a decent dividend yield of 2.35%. However, historical data indicate FXU has struggled to beat traditional utilities ETFs over long holding periods, indicating its high fee is hard to justify for long-term investors.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 7 U.S. Shale Oil Stocks to Buy as Prices Rise * 10 Stocks to Sell Before They Give Back 2019 Gains * 10 Oversold Stocks to Run From Compare Brokers The post 3 Earnings-Season Utilities ETFs for Conservative Investors appeared first on InvestorPlace.
The utilities sector remains scorching hot. The Utilities Select Sector SPDR (NYSEArca: XLU), the largest utilities ETF by assets, traded higher again Tuesday, extending its year-to-date gain to nearly ...
Stocks tumbled on Friday, but the utilities sector stood tall. Utilities, traditionally a safe-haven sector, lived up to that reputation on Friday when the Utilities Select Sector SPDR (NYSEArca: XLU), ...
The Utilities Select Sector SPDR (XLU) , the largest utilities ETF by assets, and rival utilities ETFs are soaring this year. With expectations in place that the Federal Reserve may not hike interest rates this year, some defensive, rate-sensitive sectors are delivering impressive performances. The utilities sector was suppose to be a throw away investment as many anticipated a strong economy with a full labor market to push up interest rates, which traditionally weighed on the bond-like utilities stocks.
The utilities sector accounts for just 3.17% of the S&P 500. Just two sectors -- real estate and materials -- command smaller weights in the benchmark U.S. equity gauge. Typically, traits like those would lead investors to think the utilities sector is overlooked, but among the broad market's smaller sectors, utility stocks are among the more widely followed. There are several reasons why utilities grab attention despite the group's diminutive status in broader benchmarks. First, the sector usually is not as volatile as more cyclical groups. Second, utility stocks and exchange-traded funds are often prized for above-average dividend yields. Today, the Utilities Select Sector SPDR (NYSEARCA:XLU), the largest utility ETF, has a dividend yield of 3.26%, or more than 120 basis points above the yield on the S&P 500. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 F-Rated Stocks That Could Break Your Portfolio For investors looking to reduce portfolio volatility while bolstering income streams, here are some of the best utility ETFs to consider right now. ### Fidelity MSCI Utilities ETF (FUTY) Expense Ratio: 0.084%, or $8.40 annually per $10,000 invested Fidelity's cheap ETF footprint is consistently growing and its status as the provider of the least expensive sector ETFs is a big reason why. Yes, that means the Fidelity MSCI Utilities ETF (NYSEARCA:FUTY) is currently the cheapest out of all the utility ETFs on the market. Fidelity clients can realize added cost benefits with this utility ETF because Fidelity ETFs are available commission-free. The $542 million FUTY follows the MSCI USA IMI Utilities Index and holds 67 stocks. FUTY is comparable to XLU, but these utility ETFs are not identical twins. That much is proven by FUTY's slight edges in annualized volatility and returns over the past three years. While FUTY has some differences with the rival XLU, the dividend yield on the two utility ETFs is comparable as are earnings metrics. The Fidelity utilities ETF's top 10 holdings combine for over 52% of the fund's weight. ### Reaves Utilities ETF (UTES) Expense Ratio: 0.95% The Reaves Utilities ETF (NYSEARCA:UTES) sports a high fee because it is an actively managed utilities ETF. But it's still one of the best ETFs out there for those looking to invest in utility stocks. The aim of UTES is to outperform the S&P 500 Utilities Index. UTES' "qualitative (management interviews, field research, macro factor analysis) and quantitative (modeling, valuation, technicals) analysis inform bottom-up security selection through a dynamic investment process emphasizing disciplined risk management," according to the issuer. * 10 Cold Weather Stocks to Heat Up Your Returns Active management does have some benefits within the utility sector. For example, the UTES management team can drill down on the sector's better risk/reward opportunities while potentially identifying some utility stocks that are less sensitive to rising interest rates than the sector at large. Over the past year, this utilities ETF is beating XLU by nearly 100 basis points. ### Invesco S&P 500 Equal Weight Utilities ETF (RYU) Expense Ratio: 0.40% Many of the largest utility ETFs are cap-weighted funds, meaning they tilt toward the sector's largest constituents. That strategy makes sense because the sector is a large cap-intensive group, but reducing dependency on the sector's biggest names can payoff from time-to-time. The Invesco S&P 500 Equal Weight Utilities ETF (NYSEARCA:RYU), the dominant name among equal-weight utility ETFs, is home to 27 stocks with an average market capitalization of almost $35 billion. None of its components command weights of more than 3.96%. In traditional utility ETFs, the largest holding's weight is usually double or triple what it is in RYU. This utility ETF allocates almost 30% of its weight to mid-cap stocks, a figure that is high relative to rival funds. Over the past three years, RUTY slightly outpaced the cap-weighted XLU with slightly less annualized volatility. ### Invesco DWA Utilities Momentum ETF (PUI) Expense Ratio: 0.60% When an investor really wants a unique weighting methodology for utility stocks, the Invesco DWA Utilities Momentum ETF (NASDAQ:PUI) is the best utility ETF to consider. PUI tracks the Dorsey Wright Utilities Technical Leaders Index, which "is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security's performance in a given universe over time as compared to the performance of all other securities in that universe," according to Invesco. * 7 High-Yield ETFs for Brave Investors While momentum is not often a trait associated with utilities ETFs, the point is PUI works when this sector is in favor. This utilities ETF outperformed XLU by 830 basis points over the past three years. Note that nearly two-thirds of PUI's holdings are mid- or small-cap names. ### Invesco S&P SmallCap Utilities & Communication Services ETF (PSCU) Expense Ratio: 0.29% Speaking of smaller utility stocks, the Invesco S&P SmallCap Utilities & Communication Services ETF (NASDAQ:PSCU) is the small-cap answer to the aforementioned XLU. The average market value of PSCU's 23 holdings is $2.39 billion; extremely small relative to traditional utilities ETFs. With that market cap being slightly above the highest end of small-cap territory, about 12% of PSCU's holdings are mid-caps. Yes, small-cap utility ETFs can outperform their large-cap peers, but do not expect a utility ETF like PSCU to consistently outperform standard small-cap benchmarks. Over the past three years, PSCU beat XLU, but the small-cap utility ETF trailed the S&P SmallCap 600 Index by a wide margin. As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 F-Rated Stocks That Could Break Your Portfolio * 5 Fintech Stocks to Buy As This Mega Trend Gains Steam * 10 Cold Weather Stocks to Heat Up Your Returns Compare Brokers The post 5 of the Best Utility ETFs to Invest in Now appeared first on InvestorPlace.
Defensive sectors, including consumer staples and utilities, held up somewhat well relative to growth sectors as stocks swooned in the fourth quarter. The Utilities Select Sector SPDR (NYSEArca: XLU) posted ...
This week's ETF Leaders list includes two utility plays that are holding up better than most other funds, relatively speaking, in a volatile stock market.
Stock markets experienced a sharp fall on Dec 4 due to uncertainties surrounding trade talks and flattening of the yield curve, putting utility ETFs in focus.
Investors that embrace the utilities sector and exchange traded funds such as the Utilities Select Sector SPDR (XLU) often do so for two reasons: Above-average dividend yields and reduced volatility. During the recent bout of market volatility, utilities ETFs lived up to their shelter from the storm reputation. Over the past 90 days, XLU, the largest utilities ETF by assets, is up 3 percent while the S&P 500 is lower by 5.4 percent.
As U.S. markets continue to wobble, investors who want to stay in the game can look to defensive sector-related ETFs for a more steady approach. “If the sell-off continues and it deepens, it’s going to ...
Utilities stocks and sector-related ETFs were among the better performers Friday as investors took a more optimistic view over the defensive sector in response to easing bankruptcy concerns from the recent California wildfires. On Friday, the Utilities Select Sector SPDR (XLU) gained 1.3%, Vanguard Utilities ETF (VPU) rose 1.2%, Fidelity MSCI Utilities Index ETF (FUTY) added 1.3%, iShares U.S. Utilities ETF (IDU) increased 1.1% and Reaves Utilities ETF (UTES) was 0.9% higher. “We’re tilted toward a negative near-term outcome and expect a slowdown,” Barry Bannister, head of institutional equity strategy at Stifel Nicolaus, told the Wall Street Journal, adding that they have increased exposure to sectors such as utilities, consumer staples and health care.