Three ETFs Offering Exposure to International Utilities

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 |  Includes: CPYYY, DBU, ECIFF, EONGY, EXC, FOJCF, IBDRY, IPU, JXI, SO
by: David Hunkar

The three ETFs that investors can use to invest in foreign utilities are iShares S&P Global Utilities Sector Index Fund (NYSEARCA:JXI) , WisdomTree International Utilities Fund (NYSEARCA:DBU) and SPDR S&P International Utilities Sector Fund (NYSEARCA:IPU).

Among these ETFs, iShares’ JXI is the largest fund with an asset base of $165M. The distribution yield is 5.62%. In addition to foreign utilities, JXI invests in US utilities also such as Exelon (NYSE:EXC) and Southern Company (NYSE:SO). As of 10/31/2009 this year, the fund has a negative return of 2.19%. Last year it was down 29.15%. However the fund is an easy way to gain exposure to many foreign utilities like Iberdrola (OTCPK:IBDRY) (Spain), Centrica (OTCPK:CPYYY) (UK) and E.ON (OTCQX:EONGY) (Germany).

Comparison of 3 ETFs for Global Utilities:

ETF Name Ticker Total Net Assets Distribution Yield Expense Ratio
iShares S&P Global Utilities Sector Index Fund JXI $165M 5.62% 0.50%
WisdomTree International Utilities Sector Fund DBU $36M 10.42% 0.58%
SPDR S&P International Utilities Sector Fund IPU $4M 3.91% 0.48%
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2-Year Performance Comparison:

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Among its top 10 holdings, The WisdomTree International Utilities Sector Fund (DBU) has some excellent utility stocks including Fortum Oyj (OTC:FOJCF) of Finland and Electricite de France (OTC:ECIFF) of France. The SPDR S&P International Utilities Sector Fund (IPU) has a very low asset base of just $4M.