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 $12.87B. The average expense ratio is of 1.2%. Utilities ETFs can be found in the following asset classes:
- Fixed Income
The largest Utilities ETF is the Utilities Select Sector SPDR Fund XLU with $8.08B in assets. In the last trailing year, the best performing Utilities ETF was the UPW at 49.22%. The most-recent ETF launched in the Utilities space was the Direxion Daily Utilities Bull 3X Shares UTSL in 05/03/17.