Even if things were fine with Brazilian stocks, DBU would present some cause for concern because Italy and Japan combine for almost 20% of the fund’s weight. That implies a level of risk that most utilities investors may not be comfortable taking in the current environment.
DBU’s yield is another cause for concern. Although many individual global utilities names have higher yields than their U.S. counterparts, DBU’s 30-day SEC yield is just 2.5% compared to 3.86% on XLU.
WisdomTree Global ex-US Utilities Fund
ETF Trends editorial team contributed to this piece.