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 $17.32B. The average expense ratio is 0.50%. Utilities ETFs can be found in the following asset classes:
The largest Utilities ETF is the Utilities Select Sector SPDR Fund XLU with $11.10B in assets. In the last trailing year, the best performing Utilities ETF was the JXI at 2.08%. The most-recent ETF launched in the Utilities space was the Global X MSCI China Utilities ETF CHIU in 12/07/18.