Electric Utilities Industry ETF

Filed Under »
Dictionary Says

Definition of 'Electric Utilities Industry ETF'

An exchange-traded fund that invests in companies which generate and distribute electric power. Electric utilities generally account for more than 80% of holdings of the largest utilities ETFs. However, since the balance is taken up by utilities that operate in other sectors such as gas, water and pipelines, these ETFs are better characterized as utilities ETFs.
Investopedia Says

Investopedia explains 'Electric Utilities Industry ETF'

Due to the nature of their business, most electric utilities have stable cash flows and high dividend payouts. Such defensive characteristics make utilities ETFs desirable investment candidates during market downturns, as well as during periods of low interest rates, low inflation and economic uncertainty.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Utility

    1. An economic ...

  2. Utilities Sector

    A category of ...

  3. Exchange-Traded Fund - ETF

    A security that ...

  4. Index ETF

    Exchange-traded ...

  5. Defensive Stock

    A stock that ...

  6. Semiconductor Industry ETF

    A ...

  7. China ETF

    Exchange-traded ...

  8. Index

    A statistical ...

  9. Reverse Gold ETF

    Exchange traded ...

  10. REIT ETF

    Exchange-traded ...

Articles Of Interest

  1. The Industry Handbook: The Utilties Industry

    In this feature, we take an in-depth look at the various techniques that determine the value and investment quality of companies from an industry perspective.

  2. Trust In Utilities

    Even in times of economic turmoil, utilities can be a good investment.

  3. Guard Your Portfolio With Defensive Stocks

    Find out how these securities can protect you from a market bust.

  4. Exchange-Traded Funds: Index Funds Vs. ETFs

    This vehicle combines the diversification of a mutual fund with the flexibility of a stock. Learn more about them here.

  5. An Inside Look At ETF Construction

    If you're an investor who likes to understand how and why your investment products work, this article is for you!

  6. Build A Model Portfolio With Style Investing

    This sophisticated approach will add flair to your returns.

  7. 5 Common Misconceptions About ETFs

    The rise in these funds' popularity has contributed to misinformation about what they are and how they work. Learn more here.

  8. Using ETFs To Build A Cost-Effective Portfolio

    ETFs are a viable alternative to mutual funds, but before you invest, there are a few things you should know.

  9. Can Regular Investors Beat The Market?

    With the big name competition out there, hard-working people who invest have a tough time beating the market.

  10. Reinvesting Capital Gains In Leveraged Portfolios

    Don't get forced into action. Learn how to plan properly to avoid making rash decisions.
Sponsored links

comments powered by Disqus
Hot Definitions

  1. Love Money

  2. Shark Watcher

  3. Judo Business Strategy

  4. Dogs Of The Dow

  5. Chinese Hedge

  6. X-Mark Signature

Recommended
Loading, please wait...
See More »
Trading Center