Utility ETFs for Growing Energy Demands | ETF Trends

No matter what you do in today’s world, you are using the goods and services provided by your local utility provider. As the country grows, greater demand for energy will likely provide a great opportunity for growth in utility exchange traded funds (ETFs), too.

Powered by coal, natural gas, nuclear energy and hydroelectric generators, the utilities sector is made up of electric power generation, transmission and distribution industries, according to the Bureau of Labor Statistics. Renewable sources is expanding, but electricity generated by renewables only makes up a small proportion. [Why Yield-Hungry Investors Are Turning to Utility ETFs.]

Services provided by utilities are heavily regulated, with most areas operating under monopolies that are watched over by public utilities commissions, who set predetermined rates.

The most pressing problems facing the utility sector include the aging infrastructure and the anticipated retirement of baby boomers, which will greatly reduce the workforce for domestic utilities. Although, the increased size and efficiency of new power plants may lead to an overall decline in future employment, as stated by the Bureau of Labor Statistics.