This map tells the story of the utility ETF opportunity:
The orange lines represent proposed electric lines needed for the rise in energy consumption.
We may need more energy as we grow, but we may start to use energy more efficiently, too, comments Richard Harris for NPR. New structures and offices are being built with new energy-saving techniques that would greatly reduce power usage. However, innovations in efficient energy usage won’t stop the fundamentals of energy consumption, i.e. a growing economy and population growth.
For more information on utilities, visit our utilities category. According to the ETF Analyzer, here are some of the largest ETFs tracking the utilities sector today (as well as a few ETFs that could benefit from the growth of renewables). All told, there are nearly 20 ways to play the utility sector:
- Utilities Select Sector SPDR (NYSEArca: XLU)
- Vanguard Utilities (NYSEArca: VPU)
- iShares Dow Jones U.S. Utilities Sector Index Fund (NYSEArca: IDU)
- Claymore/MAC Global Solar Energy (NYSEArca: TAN)
- First Trust Global Wind Energy (NYSEArca: FAN)
Max Chen contributed to this article.