Investing in utility ETFs is wise for defensive strategies. They offer steady dividends and low volatility, ensuring consistent returns and reduced risk even in economic downturns. As utilities shift from fossil fuels, they can achieve more stable costs and profitability, less affected by the fluctuations of fossil fuel prices.
To that end, iShares U.S. Utilities ETF (IDU), Vanguard Utilities Index Fund ETF Shares (VPU), and The Utilities Select Sector SPDR Fund (XLU) could be great choices for defensive investing. Before diving deeper into the stats of these ETFs, let’s discuss what makes the investment case strong for utility ETFs.
