CMS Energy Corp. US:CMS 2.67% No Initiated dividend in 2007. -1% Ameren Corp. US:AEE 2.55% Yes Dividend cut in February 2009. 3% WEC Energy Group Inc. US:WEC 2.55% No 10% Atmos Energy Corp. US:ATO 2.49% No -16% Xcel Energy Inc. US:XEL 2.44% No 13% NextEra Energy Inc. US:NEE 1.89% No 24% American Water Works Co. Inc. US:AWK 1.53% No Initiated dividend in 2008. 18% Source: FactSet
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There are several different ways to invest in utilities as a group, through exchange traded funds:
-- The Utilities Select Sector SPDR ETF (XLU) is the largest, with $11.7 billion in assets. It is weighted by market capitalization, which means competing ETFs "offer broader exposure to the full market-cap spectrum," according to FactSet. The ETF has annual expenses of 0.13% of assets and a dividend distribution yield of 3.25%. The yields listed here are according to FactSet and net of expenses.
-- The Vanguard Utilities ETF (VPU) has nearly $4 billion in assets and is FactSet's "analyst pick" in the space, because of its broad exposure to utility companies of various sizes and its low expense ratio of 0.10%. The ETF's distribution yield is 3.99%.
-- The Fidelity MSCI Utilties Index ETF (FUTY) is described by FactSet as "a direct competitor to Vanguard's similarly inexpensive VPU." FUTY has an expense ratio of 0.08% and a yield of 3.25%
-- The Invesco S&P 500 Equal Weight Utilities ETF (RYU) avoids some of the concentration risk of the cap-weighted ETFs. It has annual expenses of 0.40% and a yield of 2.99%. Unlike the other ETFs listed above, this one includes telecommunications stocks.
The iShares U.S. Utilities ETF (IDU) is another cap-weighted diversified ETF, with annual expenses of 0.43% and a yield of 2.94%.
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09-19-20 1645ETCopyright (c) 2020 Dow Jones & Company, Inc.