Equity: U.S. Utilities

IDU Top Performer Intra-day
Price $160.63
Today’s Change 0.38%
4:00pm 10/18/2019
PSCU Bottom Performer Intra-day
Price $52.40
Today’s Change -0.44%
2:30pm 10/18/2019

ETF.com Insight

With 10 ETFs and over $19.68B in combined AUM, the Equity: U.S. Utilities segment provides exposure to the U.S. space with a focus on Utilities securities.

Year-to-date, the best-performing ETF in the segment is the Vanguard Utilities ETF (VPU), with a total return of 24.32%. Meanwhile, the most popular ETF is the Utilities Select Sector SPDR Fund (XLU) with $11.38BB in assets under management.

Investors should take a look at the Vanguard Utilities ETF (VPU). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. VPU tracks a broad-based, market-cap-weighted index of US utilities companies. VPU has an expense ratio of 0.10% and tracks the MSCI US Investable Market Utilities 25/50 Index.

Performance Dispersion

ETF.com Efficiency Insight

The average efficiency score in the Equity: U.S. Utilities segment is 90 out of 100, with the Fidelity MSCI Utilities Index ETF(FUTY) obtaining the highest rating of 100 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.36% per year, with the Fidelity MSCI Utilities Index ETF (FUTY) having the lowest expense ratio, charging investors 0.08% yearly.

Investors should look for funds with tight tracking, such as the Vanguard Utilities ETF (VPU), with a 12-month median tracking difference of -0.09%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Equity: U.S. Utilities segment is 84 out of 100, with the Utilities Select Sector SPDR Fund(XLU) obtaining the highest rating of 99 out of 100.

The Utilities Select Sector SPDR Fund (XLU) is the undisputed segment leader when it comes to liquidity. The fund trades 1.04B in daily average volume. Investors should also find ample liquidity in the Vanguard Utilities ETF (VPU), with $28.15M in daily dollar volume.

Use limit orders to trade funds such as the Invesco S&P SmallCap Utilities & Communication Services ETF(PSCU), due to their double-digit market spreads.

ETF.com/ Block Liquidity

XLU
5
4
3
2
1
VPU
5
4
3
2
1
FUTY
5
4
3
2
1
FXU
5
4
3
2
1
IDU
5
4
3
2
1
RYU
5
4
3
2
1
PUI
5
4
3
2
1
JHMU
5
4
3
2
1
UTES
5
4
3
2
1
PSCU
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

The Thomson Reuters US Utilities has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.

Investors trying to match a broad market exposure should pay attention to FUTY. This fund obtains a high Fit score and investors should capture market-like returns.

Other funds diverge from the market, by nature of their investment mandates; for example, PSCU follows a Vanilla strategy and obtains a low Fit score compared with our neutral benchmark.

Index Methodology