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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: 0.43
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Long-Term Performance: 7.32% CAGR
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S&P 500 Performance: 7.03% CAGR
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Back test timeframe: January 1999 – November 2022
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Number of ETFs available in this asset class: 12
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Number of ETFs in this asset class that are 10-years old or older: 8
XLU vs SPY: January 1999 – November 2022
XLU vs SPY: December 22, 1998 – December 2, 2022
The Deep Value ETF Accumulator rankings for the 8 oldest Utilities Sector ETFs:
The 4 top ranked Utilities sector ETFs head-to-head comparisons:
RYU vs VPU vs XLU vs IDU: December 2006 – November 2022
RYU vs VPU vs XLU vs IDU: November 7, 2006 – December 2, 2022
Stated objectives of 4 top ranked Utilities sector ETFs:
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.
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.
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. The companies included in each Select Sector Index are selected on the basis of general industry classification from a universe of companies defined by the Standard & Poor’s 500 Composite Stock® Index (“S&P 500®”). The eleven Select Sector Indexes (each a “Select Sector Index”) upon which the Select Sector SPDR Funds are based together comprise all of the companies in the S&P 500. The Utilities Select Sector Index includes companies from the following industries: electric utilities; water utilities; multi-utilities; independent power and renewable electricity producers; and gas utilities.
IDU – The iShares U.S. Utilities ETF seeks to track the investment results of an index composed of U.S. equities in the utilities sector. Exposure to U.S. companies that supply electricity, gas, and water. Targeted access to domestic utility stocks. Use to express a sector view.
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.