While
these utility stock ETFs are not the highest yielding ETFs like Preferreds and other esoteric sectors yielding 6 - 8 %, they are much more steady performers less subject to shocks to the economy.
The following diversified
Utility Stock ETFs are all yielding a respectable 4 - 5 %.
You may also be interested in considering High Yield Bond ETFs High Yield Real Estate Investment Trusts (REITs) High Yield Closed End Funds High Yield
Utility Stock ETFs Return from High Yield ETFs to More on High Yield Passive Income
Not exact matches
You can also invest in sector - specific
ETFs, which contain
stocks of companies in particular segments of the economy — from the communications sector to
utilities and health care.
When market conditions favor wider diversification in the view of Hussman Strategic Advisors, Inc., the Fund's investment manager, the Fund may invest up to 30 % of its net assets in securities outside of the U.S. fixed - income market, such as
utility and other energy - related
stocks, precious metals and mining
stocks, shares of real estate investment trusts («REITs»), shares of exchange - traded funds («
ETFs») and other similar instruments, and foreign government debt securities, including debt issued by governments of emerging market countries.
Roughly half of the
ETFs have a higher correlation to treasury bonds and the other half to the S&P 500 Index (i.e., CWB — convertible bonds, JNK — high yield corporate, PFF — preferred
stock and XLU —
utilities all react to interest rates but are more correlated to the
stock market than to treasury bonds).
Another common strategy is using passive products actively: for example, you might use sector
ETFs to move from defensive
utilities to aggressive technology
stocks when you think the timing is right.
Nearly a quarter of the
ETF is in
utility stocks, for example.
Disclosure: No position in the
Utility ETFs mentioned or any
Utility Stocks as of the time of this writing.
I know how much monthly essential expenditures would be such as rent, grocery (I never sacrifice quality of what we eat),
utilities, internet etc... Everything else goes immediately to our investment accounts where we buy high quality undervalued
stocks and
ETFs.
His advice to beginning investors is the same as it is for all investors: buy high - quality, mostly dividend paying
stocks (or
ETFs that hold these
stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance,
Utilities and Consumer).
Japan
ETFs,
ETFs & GDP,
Stock vs. Bond
ETFs,
ETFs & Credit Trends, Margin Debt &
ETFs,
ETFs &
Stock Valuations, Safe Haven
ETFs, Gold
ETFs, Treasury Bond
ETFs,
Utilities ETFs, Global Recession &
ETFs Please click here to listen to the show.
A couple of excellent exchange - traded funds (
ETFs) that trade on the New York
Stock Exchange specialize in the
utility sector and I would recommend them to your attention.
(Barron's: Aug 1, 2016) Barron's said many dividend
ETFs have outperformed the S&P 500 over the past 12 months, mostly because of their large allocations to
utility stocks, which pay high dividend yields and which have appreciated significantly this year.
Utility and other dividend - paying
stocks and
ETFs based on them, however, can be hedged against general
stock market declines.
Assembling an
ETF portfolio seems to be a real bloody joke — just jam in any
stock that appears even vaguely related to the investment theme... For water
ETFs, that boils down to
utilities, particularly when you note their larger market caps.
Yet although these defensive
stocks from industries like consumer staples and regulated
utilities have typically lagged during bull markets, both the iShares and PowerShares
ETFs have produced strong performance during the current bull period.
Not only has this drop in yields been positive for traditional bond funds such as the iShares 7 - 10 Year Treasury
ETF (IEF), but preferred
stocks, REITs, and even
utilities have benefited as well.
Losers in
stocks included Vanguard
Utilities (VPU) down 3.24 % and Vanguard Telecom Services
ETF (VOX) down 1.38 % with a big 15.70 % loss in PowerShares DB Crude Oil Dble Short (DTO)(oil reversed course in September).
And yes, that makes a staples / health care /
utilities heavy iShares Emerging Minimum Volatility
ETF (EEMV) a worthy alternative to Vanguard Emerging Markets
Stock ETF (VWO).