Utilities exchange-traded funds (ETF) are the ETFs which invest in the stocks of companies or other financial instruments that belong to the utility sector. The utilities sector refers to the category of stocks for utilities such as fuel and power, and may additionally include infrstructure sector companies as they are also considered as utilities. Typically, such utlity sector companies include those in the business of generating, transmitting, supplying, marketing or offering supporting services around electricity, gas and water businesses, and related integrated service providers. See a list of Water ETFs. Then there is a big variety in terms of leveraged ETFs which attempt to magnify the returns by a factor (like 2x or 3x), there are inverse ETFs belonging to the utilities sector which attempt to generate returns which are inverse of the returns generated by the benchmark index (-1x), and there are a few that offer a combination of leveraged and inverse utilities ETF (like -3x returns.) Following is the list of all 20 exchange-traded funds that FKnol has in its database for ETFs which belong to the Utilities category:
CHIU tracks a cap-weighted index of Chinese large- and midcap companies in the utilities sector. The index includes A shares. ...Detailed Profile Dividend Frequency: Annually Dividend History
Category: China Equities
ECLN tracks an index of developed-economy equities of companies committed to a reduction of carbon emissions. ...Detailed Profile Dividend Frequency: Dividend History
Category: Utilities Equities
The Fidelity MSCI Utilities Index ETF tracks a market-cap-weighted index of stocks in the US utilities sector. ...Detailed Profile Dividend Frequency: Quarterly Dividend History
Category: Utilities Equities
The First Trust Utilities AlphaDEX Fund tracks a tiered equal-weighted index of US utilities firms selected from the Russell 1000. ...Detailed Profile Dividend Frequency: Quarterly Dividend History
Category: Utilities Equities
GLIF holds a portfolio of global infrastructure-related equities. ...Detailed Profile Dividend Frequency: Annually Dividend History
Category: Large Cap Blend Equities
The iShares U.S. Utilities ETF tracks a broad, market-cap-weighted index of US utilities stocks. ...Detailed Profile Dividend Frequency: Quarterly Dividend History
Category: Utilities Equities
In a nutshell, Utilities ETFs may invest in basket of stocks belonging to the companies that operate in the utilities industry. They may include broad-level multi-cap utilities, small-cap or large-cap U.S.-based utilities companies, and/or international utilities companies. The first type of such utilities ETF are the ones where the fund managers or the fund house offering the ETF may perform their own research to come up with a list of utilities stocks that they may consider as the winners and invest in them. The other kind of utilities ETF may take a passive investment approach and simply invest based on the popular utilities secto index by replicating the portfolio holdings of the benchmark index. The next kind of utilities ETFs may focus on a particular utility - like only electricity, only gas - while other ETFs may like to spread the investment across multiple such utilities. Few ETFs may also attempt to take the futures and options route, by taking a position in derivatives of utility contracts.
Where do Utilities ETFs Invest?
A long list of companies and different financial instruments exist where the Utilities exchange-traded funds may invest the money collected from the ETF investors. Below is a small sample of companies whose stocks may qualify for investment by Utilities ETFs, though there can be many more businesses and financial instruments where these ETFs can park the capital for returns:
▶ New Fortress Energy LLC (NFE): New Fortress Energy LLC operates as an energy infrastructure company worldwide. It funds, builds, and operates natural gas infrastructure and logistics to deliver fully integrated turnkey energy solutions that enable economic growth, enhance environmental stewardship, and transform local industries and communities. The company was founded in 1998 and is based in New York, New York. New Fortress Energy ....Detailed Company Profile....Dividend History
▶ Consolidated Edison Inc (ED): Consolidated Edison, Inc. (Con Edison), incorporated on September 3, 1997, is a holding company. The Company operates through its subsidiaries, which include Consolidated Edison Company of New York, Inc. (CECONY), ....Detailed Company Profile....Dividend History
▶ Duke Energy (DUK): Duke Energy Corporation (Duke Energy), incorporated on May 3, 2005, is an energy company. The Company operates through three segments: Electric Utilities and Infrastructure; Gas Utilities and Infrastructure, and Commercial ....Detailed Company Profile....Dividend History
▶ Dominion Resources (D): Dominion Resources, Inc. (Dominion), incorporated on February 18, 1983, is a producer and transporter of energy. Dominion is focused on its investment in regulated electric generation, transmission and distribution and ....Detailed Company Profile....Dividend History
▶ Exelon Corp. (EXC): Exelon Corporation, incorporated on February 4, 1999, is a utility services holding company. The Company, through its subsidiary, Exelon Generation Company, LLC (Generation), is engaged in the energy generation business. ....Detailed Company Profile....Dividend History
▶ American Electric Power (AEP): American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers i....Detailed Company Profile....Dividend History