The recent outperformance of the utilities sector has also been a result of a combination of increased heating demand due to an abnormally frigid winter and falling yields in benchmark 10-year Treasuries. [Yield-Generating Utilities ETFs Shine in a Murky Market]
RYU, which has performed inline with XLU year-to-date but has outperformed the cap-weighted fund over the past month, has other perks as well, including a decent yield and reduced beta.
“The fund provides a reasonable yield in today’s low yield environment, low volatility with a beta of 0.87 and reasonable liquidity. Should the global economy contract because of a readjustment in the Chinese economy, and the U.S. economy remains reasonably strong with depressed commodity prices, a utility fund such as the Guggenheim S&P 500 Equal Weight Utilities ETF would do well generating good returns with relative safety for some time to come,” according to a post on Seeking Alpha.
Guggenheim S&P Equal Weight Utilities ETF