However, Del Thiessen for Seeking Alpha cautions that they’re not immune from downturns, even though they are less likely to suffer a precipitous drop when times are bad. In fact, he says, utility ETFs have several advantages over single stocks: diverse holdings, relatively low risk and they generate dividends.
- PowerShares Dynamic Utilities (PUI), down 7% year-to-date
- iShares S&P Global Utilities (JXI), down 8.4% year-to-date
- Vanguard Utilities ETF (VPU), down 6.9% year-to-date
- Utilities Select Sector SPDR (XLU), down 6.5% year-to-date
All but PUI remain above their trend line (200-day moving average).