Utility ETFs: The Top 5 Exchange Traded Funds for Your Utility Investing List

Utility ETFs are on the radar as boomers make a multi-decade transition to fixed income investments to aid retirement. These stocks also happen to be huge beneficiaries when energy consumption rises along with a strengthening economy.

Here are a handful for your investment watchlist:

Your Cheat Sheet to Utility Exchange Traded Funds

1) Utilities Select Sector SPDR Fund (NYSE:XLU): This is a highly liquid and cost efficient way to gain diversified exposure to US utilities. If you want safe and secure, this is one to tuck away. Check out XLU’s interactive chart, fundamentals, Twitter stream, and more >>

2) iShares S&P Global Utilities Sector Index Fund (NYSE:JXI): This is a nice way to make the global utility play. I’m not in love with the low level of liquidity, but if you are buying and holding, it’s less of an issue. Check out JXI’s interactive chart, fundamentals, Twitter stream, and more >>

3) First Trust NASDAQ Clean Edge (ASSE:GRID): If you believe growth is in clean energy, here’s a fun one for your portfolio. Caveat Emptor: this ETF trades ~5,000 shares a day, so that is extremely low volume. Check out GRID’s interactive chart, fundamentals, Twitter stream, and more >>

4) The Best of the Rest: The remaining utility ETFs are all low liquidity vehicles. They vary in cost structure, so you can take a look if the above 3 ETFs are not enough for you. They include:

  • First Trust Utilities AlphaDEX Fund (NYSE:FXU)
  • iShares Dow Jones U.S. Utilities Sector Index Fund (NYSE:IDU)
  • Powershares Dynamic Utilities Portfolio Fund (NYSE:PUI)
  • Rydex S&P Equal Weight Utilities ETF (NYSE:RYU)
  • SPDR S&P International Utilities Sector ETF (NYSE:IPU)
  • Utilities HOLDRS ETF (NYSE:UTH)
  • Vanguard Utilities ETF (NYSE:VPU)
  • WisdomTree International Utilities Sector Fund (NYSE:DBU)

Levered Utility Exchange Traded Funds

Lovers

4) ProShares Ultra Utilities Fund (NYSE:UPW): This ETF is levered 2x the daily performance of the Dow Jones U.S. Utilities Index. However, it averages only ~16,000 shares traded each day. That’s an extremely low amount of liquidity. Check out UPW’s interactive chart, fundamentals, Twitter stream, and more >>

Haters

5) ProShares UltraShort Utilities Fund (NYSE:SDP): This ETF is levered 2x the inverse (opposite) of the daily performance of the Dow Jones U.S. Utilities Index. Beware the leverage is 2x! But if you need your fix, it’s the only way to get it. Check out SDP’s interactive chart, fundamentals, Twitter stream, and more >>

Don’t Miss: Oil ETFs: The Top 10 Exchange Traded Funds for Your Oil Investing List >>

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