With the economy slowing down, an increasing number of investors are putting their money into utility stocks due to their stable earnings & high dividend yields. Click here to see the strength in utility sector since May 19.
In most states, electricity infrastructure is 20-25 years old & requires a substantial amount of investment on behalf of the utility companies. With the recent blackouts in major cities, state officials have started paying more attention to electricity grids. There are talks about subsidizing investments in electricity infrastructure by utility companies.
Investors can benefit from this trend by investing in the Utilities HOLDRs (UTH) exchange traded fund.
Yaser Anwar is a guest author at ETFtrends & the editor of Investment Ideas by Yaser Anwar blog. The author of this article is not a registered financial advisor & does not give investment advice. This article does not comprise any solicitation to buy or sell securities, ETFs or other investment vehicles.