Analysis of Utility ETF Investment Strategies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Yahoo Finance
- Utility ETF Overview: The Vanguard Utilities Index Fund ETF (VPU) offers broader mid and small-cap utility investment options at a 0.09% expense ratio for buy-and-hold income investors, having risen about 10% over the past year, indicating stable income potential.
- Liquidity Standard: The Utilities Select Sector SPDR Fund (XLU) is the default choice as it tracks the S&P 500 utilities sector, featuring 14% in NextEra Energy and about 7% in Southern and Duke Energy, with an expense ratio of 0.08% and a yield of approximately 2.6%, making it suitable for liquidity-focused investors.
- Low-Cost Option: The Fidelity MSCI Utilities Index ETF (FUTY) provides a low-cost option for Fidelity account holders with a 0.084% expense ratio and commission-free trading, also rising about 10% over the past year, though it has a smaller asset base and lower liquidity compared to the others.
- Investment Decision Tree: For investors prioritizing liquidity and institutional-quality execution, XLU is the standard; for long-term holders seeking broad utility exposure at the lowest cost, VPU is the pick, while FUTY is ideal for Fidelity clients looking for a permanent allocation.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 215.330
Low
200.00
Averages
264.97
High
352.00
Current: 215.330
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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