How Utility ETFs Could Benefit Your Portfolio

September 15th at 8:00am by Tom Lydon

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Utility_etfs Utility exchange traded funds (ETFs) are one option for diversification in an investor’s portfolio. There is also the added benefit of diversification within the sector in areas such as electric utilities, natural gas, and generators. Utilities also offer an opportunity for dividend payouts, which can be another bonus. With the recent credit crunch, consumers are more likely to pay their utility bills than buy discretionary goods, which could bode well for utility stocks and ETFs.

Make sure to research these ETFs before purchasing to ensure they fit with your financial goals and know what separates them from their competitors. Below are some different utilities ETFs to consider and their year-to-date performance:

  • PowerShares Dynamic Utilities (PUI) – down 1.0%
  • Utilities HOLDRs (UTH) – up 9.5%
  • Utilities Select Sector SPDR (XLU) – up 8.1%
  • Vanguard Utilities ETF (VPU) – up 7.7%
  • iShares Dow Jones U.S. Utilities (IDU) – up 7.3%

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