Utilities ETFs invest in the equity of companies from the utilities industry. These companies are known for their reliable dividend payments and negative correlations to interest rates. A favorite for income investors, utilities often have higher dividend yields and carry moderate levels of risk.
Utilities ETFs are classified under this market segment:
With 15 ETFs traded in the U.S. markets, Utilities ETFs gather total assets under management of $11.00B. The average expense ratio is 0.52%. Utilities ETFs can be found in the following asset classes:
The largest Utilities ETF is the Utilities Select Sector SPDR Fund XLU with $7.07B in assets. In the last trailing year, the best performing Utilities ETF was the JXI at 7.20%. The most-recent ETF launched in the Utilities space was the Direxion Daily Utilities Bull 3X Shares UTSL in 05/03/17.