|Bid||28.71 x 4000|
|Ask||28.72 x 1000|
|Day's Range||28.70 - 28.84|
|52 Week Range||25.59 - 30.16|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||9.56%|
|Beta (3Y Monthly)||0.33|
|Expense Ratio (net)||0.63%|
In-house ETFs have an inherent conflict of interest because their issuers’ financial advisors might favor them over competing ETFs. Are there better alternatives?
Gold, bonds and other defensive assets are prime options to get defensive in today's market, but one area to consider is utility-focused exchange-traded funds (ETFs). The rest of 2019 could see a continued shift towards the utilities sector, and as such, here are a pair of ETFs to consider, especially in today's volatility--the First Trust Utilities AlphaDEX ETF (FXU) and the JHancock Multifactor Utilities ETF (JHMU) . FXU seeks investment results that correspond generally to the price and yield (before the fund's fees and expenses) of an equity index called the StrataQuant® Utilities Index.
First Trust Advisors L.P. announces the declaration of distributions for 125 exchange-traded funds advised by FTA.
Momentum, an investment factor rooted in the idea that a security that has already appreciated in price can continue doing so, makes a predictable candidate to overshoot declines when the broad market declines. The iShares Edge MSCI USA Momentum Factor ETF (CBOE:MTUM) recently boosted its allocation to technology stocks to almost 40 percent of its weight, more than triple its weight to health care, its second-largest sector weight. “Using momentum ETFs, investors can gain some diversification using this approach, but it is important to understand the exposure is not static and that momentum funds can be quite different,” said CFRA Research Director of ETF & Mutual Fund Research Todd Rosenbluth in a note out Thursday.
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.
Utilities stocks were something of a mixed bag in 2018. Companies offering products and services related to water, electricity, gas and other infrastructure managed to outperform many other sectors. However, broad losses across the market in the last portion of the year leveled the playing field to some extent.
Utilities sector exchange traded funds were among the worst performers Monday after PG&E (PCG) prepares its bankruptcy filing in response to the devastating liabilities incurred during the widespread wildfires across California. On Monday, the Invesco S&P 500 Equal Weight Utilities ETF (RYU) fell 3.0%, First Trust Utilities AlphaDEX Fund (FXU) dropped 2.7% and Utilities Select Sector SPDR (XLU) decreased 2.4%, with the utilities sector-related ETFs briefly testing their long-term support at the 200-day simple moving average. PG&E said it is preparing to file for Chapter 11 bankruptcy for all its businesses due to the liabilities linked to the wildfires in 2017 and 2018, Reuters reports.
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.
Tis the season to see volatility as U.S. equities have given investors a roller coaster ride of market oscillations the past two months, but as investors look to duck under safe-haven assets, one place ...