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 on the U.S. markets, Utilities ETFs have total assets under management of $17.60B. The average expense ratio is 0.51%. Utilities ETFs can be found in the following asset classes:
The largest Utilities ETF is the Utilities Select Sector SPDR Fund XLU with $11.82B in assets. In the last trailing year, the best-performing Utilities ETF was PSCU at 6.87%. The most recent ETF launched in the Utilities space was the Global X MSCI China Utilities ETF CHIU on 12/07/18.