In this piece, we will take a look at the five best utilities ETFs to buy. If you want to take a look at why utilities is an important part of any economy, then check out 12 Best Utilities ETFs to Buy.
5. Invesco S&P 500 Equal Weight Utilities ETF (NYSE:RSPU)
5 Year Share Price Gains: 17.32%
Invesco S&P 500 Equal Weight Utilities ETF (NYSE:RSPU) is an ETF that tracks the S&P 500 Equal Weight Utilities Plus Index. It changed its ticker to RSPU earlier this year, and the fund has net assets of $350 million. This ETF was set up in 2006 and all of its investments are in utility stocks. The Invesco S&P 500 Equal Weight Utilities ETF (NYSE:RSPU)’s top three investments are in NRG Energy, Inc. (NYSE:NRG), The AES Corporation (NYSE:AES), and Edison International (NYSE:EIX). By the end of this year’s second quarter, 39, 36, and 25 hedge funds out of the 910 that were part of Insider Monkey’s database had invested in the three companies, respectively.
4. First Trust EIP Carbon Impact ETF (NYSE:ECLN)
5 Year Share Price Gains: 18.23%
First Trust EIP Carbon Impact ETF (NYSE:ECLN) seeks to invest in energy, utility, renewable energy, and other firms that are seeking to reduce their carbon footprint and focus on the environment through their operations. One of the smallest ETFs on our list, it has $36 million in net assets. The First Trust EIP Carbon Impact ETF (NYSE:ECLN) ETF is also a relatively younger fund since it was set up in 2019. Nearly 70% of its investments are in utility companies, with NextEra and American Electric being some of the biggest utility investments.
3. Virtus Reaves Utilities ETF (NYSE:UTES)
5 Year Share Price Gains: 26.34%
Virtus Reaves Utilities ETF (NYSE:UTES) is managed by Virtus Investment Partners. Like several other utility ETFs, it also invests in value and mid sized stocks. The total net asset value is $44.2 million and the fund was set up in 2015. The ETF’s price to trailing earnings ratio is 20.59 and the fund has significant investments in Duke Energy, NextEra Energy, and DTE Energy Company (NYSE:DTE), with DTE counting 27 out of the 910 hedge funds part of Insider Monkey’s database as its research as of June 2023.
2. iShares U.S. Infrastructure ETF (BATS:IFRA)
5 Year Share Price Gains: 37.1%
iShares U.S. Infrastructure ETF (BATS:IFRA) is an infrastructure ETF that invests in large scale infrastructure operators such as utilities. Looking at its composition, 38% of the investments are in utilities and 35% are in industrial companies. Some large utility investments are in NRG Energy, Inc. (NYSE:NRG), EnLink Midstream, LLC (NYSE:ENLC), and Vistra Corp. (NYSE:VST). The fund was set up in 2018 and has a net asset value of 2.15 billion.
1. Global X U.S. Infrastructure Development ETF (BATS:PAVE)
5 Year Share Price Gains: 86%
Global X U.S. Infrastructure Development ETF (BATS:PAVE) is a large ETF with a net asset value of $5 billion despite the fact that it was set up in 2017. An infrastructure ETF, it invests in companies that manufacture and sell industrial equipment to utilities.
Disclosure: None. You can also take a look at 20 States with the Most Electric Vehicles and Goldman Sachs Dividend Stocks: Top 12 Stock Picks.
