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Asset Class: Utilities Sector
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Oldest ETF back tested: The Utilities Select Sector SPDR® Fund (XLU)
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Correlation to U.S. Stock Market: 0.40
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Long-Term Performance: 7.24% CAGR
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S&P 500 Performance: 7.87% CAGR
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Back test timeframe: January 1999 – October 2021
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Number of ETFs available in this asset class: 13
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Number of ETFs in this asset class that are 10-years old or older: 8
XLU vs SPY: January 1999 – October 2021
XLU vs SPY: December 22, 1998 – November 12, 2021
The Deep Value ETF Accumulator rankings for the 8 oldest Utilities Sector ETFs:
The 4 top ranked Utilities sector ETFs head-to-head comparisons:
PSCU vs VPU vs RYU vs XLU: May 2010 – October 2021
PSCU vs VPU vs RYU vs XLU: April 7, 2010 – November 12, 2021
Stated objectives of 4 top ranked Utilities sector ETFs:
PSCU – The Invesco S&P SmallCap Utilities & Communication Services ETF (Fund) is based on the S&P SmallCap 600® Capped Utilities & Communication Services Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index. The Index is designed to measure the overall performance of the securities of US utility companies and companies in the communication services sector. Companies in the utility sector are principally engaged in providing either energy, water, electric or natural gas utilities, and companies the communications sector facilitate communication or offer related content and information through various types of media, such as diversified and wireless telecommunication services, media, entertainment and interactive media and services. The Index is a subset of the S&P SmallCap 600® Index, which is a float-adjusted, market-capitalization-weighted index reflecting the US small-cap market. The Fund and the Index are rebalanced and reconstituted quarterly.
VPU – Vanguard Utilities ETF. Seeks to track the performance of a benchmark index that measures the investment return of stocks in the utilities sector.
Passively managed, using a full-replication strategy when possible and a sampling strategy if regulatory constraints dictate. Includes stocks of companies that distribute electricity, water, or gas, or that operate as independent power producers.
RYU – The Invesco S&P 500® Equal Weight Utilities ETF (Fund) is based on the S&P 500® Equal Weight Utilities Plus Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index equally weights stocks found in the utilities and telecommunication services sectors of the S&P 500® Index. The Fund and the Index are rebalanced quarterly.
XLU – The Utilities Select Sector SPDR® Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Utilities Select Sector Index (the “Index”). The Index seeks to provide an effective representation of the utilities sector of the S&P 500 Index. Seeks to provide precise exposure to companies from the electric utility, water utility, multi-utility, independent power and renewable electricity producers, and gas utility industries. Allows investors to take strategic or tactical positions at a more targeted level than traditional style based investing.
Thank you for taking time to read this article. If you found it useful, please share it with a friend.
Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator article on Utilities sector ETFs:
4 Best Long-Term Performance Utilities Sector ETFs 1.4
Disclosure: We currently own shares of RYU and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.