The iShares Global Utilities ETF, home to $153.2 million in assets under management, is a global ETF, meaning it can allocate some of its weight to U.S. stocks. In fact, the U.S. is the ETF’s largest country weight at 56% followed by the U.K. at just under 11%. The SPDR S&P International Utilities Sector ETF is a purely international ETF with not U.S. exposure. The U.K. and Japan combine for over 35% of that ETF’s weight.

In the U.S., as interest rates rise, yield investors will likely sell riskier dividend-yielding equities, like utilities, for more attractive fixed-income securities. Moreover, higher rates means utilities will face stiffer borrowing costs to fund growth, which would dampen earnings.

“Bond yields have recently rolled over. If the broader market volatility persists, yields could stay depressed. This might benefit Utilities. In any case, the ECB’s policy will remain much easier than the Fed’s, and the sector has predominantly domestic exposure, which we think is a positive,” according to the J.P. Morgan note posted by Barron’s.

iShares Global Utilities ETF