Utilities ETFs: Plugged in for 2024
As an “old economy” sector, utilities are notable for their steady revenue streams. They also typically serve as a defensive segment of a portfolio.
IDU: After A Great Run, I'd Moderate Expectations (Rating Downgrade)
Evaluating the iShares U.S. Utilities ETF (IDU) as a strong investment option due to its unique diversification and exposure to U.S. utilities and waste management companies. IDU has outperformed the S&P 500 since Q1, validating my positive outlook on the Utilities sector and the fund's composition. Valuations across the sector are above-average compared to their own trading history. This means "alpha" may be hard to come by going forward.
IDU: Utilities Nearing 20x Earnings, Too Rich
The Utilities sector has outperformed in 2024, driven by AI and falling interest rates, with EPS growth from $12 in 2014 to $22 expected. The iShares U.S. Utilities ETF has surged 25% in the past year, trading at a high P/E ratio of 19.5x, raising valuation concerns. IDU offers exposure to U.S. utilities, with a forward dividend yield above the S&P 500, but its concentrated portfolio and high PEG ratio are notable risks.
Should You Invest in the iShares U.S. Utilities ETF (IDU)?
Designed to provide broad exposure to the Utilities - Broad segment of the equity market, the iShares U.S. Utilities ETF (IDU) is a passively managed exchange traded fund launched on 06/12/2000.
Utilities ETF (IDU) Hits New 52-Week High
For investors seeking momentum, iShares U.S. Utilities ETF IDU is probably on the radar. The fund just hit a 52-week high and is up 37.5% from its 52-week low price of $68.87/share.
Should You Invest in the iShares U.S. Utilities ETF (IDU)?
The iShares U.S. Utilities ETF (IDU) was launched on 06/12/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Utilities - Broad segment of the equity market.
IDU: Utilities Dashboard For June
Monthly article series shows industry metrics in utilities. The sector and its subsectors are close to their 11-year averages in valuation and quality metrics. iShares U.S. Utilities ETF: an alternative to XLU.
IDU: Not At A Discount Right Now
iShares U.S. Utilities ETF has a high expense ratio compared to its peers, making it less attractive for investors. IDU has outperformed the broader market year-to-date, but its long-term performance has been inferior to the S&P 500 index. IDU's fund price is sensitive to the change in treasury rate.
