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Utility ETFs Face Difficult Interest Rate Environment

Benzinga.com
0 Comments| June 3, 2015

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The utility sector has cooled significantly this year as rising U.S. Treasury yields threaten to sink share prices even lower. The Utility Select Sector SPDR (Utilities SPDR (ETF) (NYSE: XLU)) is the largest fund in this space, with over $6.3 billion in total assets.

A Closer Look At XLU

XLU tracks 32 large-cap utility companies engaged in traditional electric and gas services.

Top holdings in this ETF include:

  • Duke Energy Corp (NYSE: DUK)
  • NextEra Energy Inc (NYSE: NEE)
  • Dominion Resources, Inc. (NYSE: D)

The majority of the holdings within XLU are prized for their high dividend streams, which translates to an aggregate 30-day SEC yield of 3.43 percent. In addition, this fund charges a net expense ratio of 0.15 percent.

Over the last four ...

/www.benzinga.com/etfs/sector-etfs/15/06/5561668/utility-etfs-face-difficult-interest-rate-environment alt=Utility ETFs Face Difficult Interest Rate Environment>Full story available on Benzinga.com

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