Their high yields come with steady gains

Article Excerpt

While they sometimes lack high-growth potential, utilities are generally stable, profitable businesses with limited competition—and they offer investors high yields. As a result, as a group, they have a better long-term stock market performance than the overall market and come with less volatility and risk. The U.S. Federal Reserve’s decision to proceed slowly with interest rate increases has bolstered the appeal of utilities (and REITs) with investors. That’s because it has helped to reduce concerns about the high debt loads of utilities. Here are three top ETFs focused on utilities. See more information in the box on pg. 44 and the supplement, pg. 50. VANGUARD UTILITIES ETF $128.27 (New York symbol VPU; TSINetwork ETF Rating: Aggressive; Market cap: $4.7 billion) invests in utility companies based in the U.S. It tracks the market cap-weighted MSCI U.S. Investable Market Utilities Index. The portfolio includes companies that distribute electricity (56.2% of assets), water (3.8%) or gas (6.3%) or operate as power producers (3.8%). A further 29.9% of the holdings…

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