September 17, 2007 at 3:29 pm by Tom Lydon
Could exchange traded funds (ETFs) be a solution to the problem of power shortages within emerging-market countries?
Reinhardt Krause for Investor’s Business Daily says power demand grows quicker than the economies of some emerging-market countries. Consider that some utilities in emerging markets pay better dividends than those in the U.S. Our utilities aren’t growth stocks, and demand barely keeps up with the pace of the economy. In Latin America, electricity demand is growing much faster than here in the U.S. Most Latin American utilities provide above 5% dividend yields, some over 10%, which is well above the average U.S. utility. Globally, electricity demand is expected to double by 2030, and China is expected to have the most usage. In the meantime, consider some of these ETFs and their year-to-date performance:
- iShares S&P Global Utilities (JXI) - up 9.8%
- WisdomTree International Utilities (DBU) - up 8.7%
- iShares MSCI Emerging Markets (EEM) - up 20%
- Vanguard Emerging Markets Stock ETF (VWO) - up 24.7%
- BLDRs Emerging Markets 50 ADR Index (ADRE) - up 22.9%
Tags: Emerging Markets, Utilities
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