Defensive, Dividend-Paying Utilities Sector ETFs Remain Hot | Page 2 of 2 | ETF Trends

However, investors should be aware that utilities could experience flat returns or underperform other equity sectors over the long term as interest rates rise.

“Higher rates generally make fixed-income instruments more attractive on a relative basis and make bond-like equities, such as utilities companies, less attractive,” Goldsborough added.

tilities Select Sector SPDR

For more information on the utilities sector, visit our utilities category.

Max Chen contributed to this article.