4 Utilities ETFs Shine Amid Market Uncertainty

As U.S. equities experienced swings over recent weeks, utilities stocks and utility ETFs have outperformed.

Over the past month, the Utilities Select Sector SPDR (NYSEArca: XLU) rose 2.2%, Vanguard Utilities ETF (NYSEArca: VPU) gained 2.3% and First Trust Utilities AlphaDEX Fund (NYSEArca: FXU) increased 2.5% and Reaves Utilities ETF (NYSEArca: UTES) added 2.0%. In contrast, the S&P 500 dipped 2.1%.

In the equities space, utilities have traditionally acted as a safe sector bet and have been seen as a reliable source of income.

“Investors looking for income should take another look at utilities,” Jay Rhame, co-portfolio manager of the Reaves Utilities ETF, said in a note. “Like MLPs, the utilities sector has long been a reliable source of dividends, but for investors choosing between the two, utilities offer some clear advantages.”