Utilities stocks and exchange-traded funds faced plenty of challenges last year as the Federal Reserve set the stage for its first interest rate increase in nearly a decade. With the central bank poised to raise borrowing costs several times this year, investors should approach the utilities sector and its ETFs with caution.
“The utilities sector experienced a challenging 2015, with its performance the third-worst of the 10 S&P 1500 sectors. But, in the early days of 2016, the sector's relative safety has offered appeal. Based on a recent review by SNL Financial of upside to sell-side analyst target prices, a number of these companies could have a strong bounce back in 2016,” said S&P Capital IQ in a new research note.
XLU And VPU
Last year, the Utilities SPDR (ETF) (NYSE: XLU), the largest utilities ...
/www.benzinga.com/trading-ideas/long-ideas/16/01/6122349/different-ways-to-turn-the-lights-on-with-utilities-etfs alt=Different Ways To Turn The Lights On With Utilities ETFs>Full story available on Benzinga.com
More...