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iShares U.S. Utilities ETF (IDU)

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  • Sep. 12, 2013, 1:39 PM
    • Dividend payers may be a good place to hide out from rising interest rates, but those stocks sporting the highest yields - telecoms and utilities - tend to have slow payment growth, making them less-attractive as rates rise. Checking back to the 1994 bond bear market, telecoms and utilities were among the market's worst performers.
    • Better to shop for modest payers, but above-average payment growth. Barron's screens for those characteristics combined with reasonable overall valuation and turns up three names: Boeing (BA), CVS Caremark (CVS), and GE.
    • Certain dividend ETFs employ this strategy as well, with Vanguard's Dividend Appreciation (VIG) - almost zero exposure to telecoms and utilities  - and WisdomTree's U.S. Dividend Growth ETF (DGRW) coming to mind. Others include DGRS, DNL, EMDG, DGRE.
    • Other dividend ETFs: FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO.
    • Telecom and utility ETFs: IYZ, XTL, VOX, LTL, TLLIDU, PUI, XLU, VPU, RYU, FXU, PSCU, UPW, SDP, UTLT.
    | 4 Comments
  • Sep. 11, 2013, 12:52 PM
    • The Obama administration is considering banning new coal plants without increased emission standards, Bloomberg reports.
    • Revised EPA rules are under White House review and could be reworked before a scheduled Sept. 20 release, but it appears new coal plants would need to install expensive equipment to limit climate-change emissions.
    • The revised standard would retain a provision letting utilities phase-in the capture technology over time, a source says.
    • ETFs: KOL, XLU, IDU, PUI, VPU, RYU, FXU, PSCU, UPW, SDP, UTLT.
    | 6 Comments
  • Sep. 11, 2013, 12:19 PM
    | 2 Comments
  • Aug. 16, 2013, 4:25 PM
    • The week's ETF movers - Gainers: GDXJ +17.65%. PSLV +14.72%. SIVR +13.19%. SLV +13.06%. GDX +12.54%.
      ETF Losers: VNQ -6.59%. IYR -6.45%. BRF -5.15%. XLU -4.09%. IDU -4.02%.
    | Comment!
  • Jul. 24, 2013, 1:29 PM
    Utilities (XLU -1.7%) lead the way lower today as interest rates shoot higher. Also taking a hit are basic materials (XLB -1.2%) and energy (XLE -1.5%) as most commodities, including oil (USO -1.8%), are lit up bright red. Bank of America, AIG, and Berkshire Hathaway are among the financial sector (XLF -0.6%) stocks taking a breather after big runs for most.
    | Comment!
  • Jul. 10, 2013, 4:41 PM
    Utility (XLU, IDU) dividends grew at an annual clip of 5%-8% during 2008-12, but 2013 is shaping up to be much different. Continued dividend expansion requires "earnings growth, which is becoming harder to generate for utilities, given the sales trend," a Deutsche Bank analyst says, seeing dividend growth rates likely to be capped by earnings growth rates of 4%-5% for the next few years.
    | 4 Comments
  • Jul. 5, 2013, 10:58 AM
    Utilities stocks (XLU -1.2%) are under heavy selling pressure as interest rates soar: EXC -1.7%, EIX -2%, FE -1.9%, PCG -1.5%, ED -1.4%, D -1.2%, PEG -1.3%, DUK -1.2%, NU -1.7%, SO -1%, NEE -1%, NRG -1.3%, SRE -1.6%, ETR -2.3%, XEL -1.7%, AEP -1.3%.
    | 7 Comments
  • Jun. 26, 2013, 8:49 AM
    iShares U.S. Utilities ETF (IDU) announces quarterly distribution of $0.7973. 30-Day SEC yield of 3.36% (as of 05/31/2013). For shareholders of record June 28. Payable July 02. Ex-div date June 26.
    | Comment!
  • Jun. 25, 2013, 10:43 AM
    Short interest in S&P 500 stocks has virtually disappeared, but what few remain are concentrated in Telecom (IYZ), Commercial Services, Semiconductors (XSD), Consumer Durables (XLY), and Retail (XRT). Where they're not are in Household Goods (XLP), Autos (CARZ), and Utilities (XLU, IDU).
    | Comment!
  • Jun. 18, 2013, 9:11 AM
    BAML private clients bought the dip last week, with the flows going via ETFs into large-cap and dividend plays like Utilities (XLU, IDU) - which saw the greatest buying since November 2011. Another favorite of the dividend crowd, Telecoms (IYZ) saw the biggest inflows since February. After buying through the spring, hedge funds turned sellers last week, and are now net-sellers YTD - just like 2012.
    | Comment!
  • Jun. 17, 2013, 12:56 PM
    More from Zulauf at Barron's: Taking issue with the gathering consensus of a stronger economy and the Fed pulling back, Zulauf suggests bond yields (TLT, TBT) may have stopped rising and could be set to fall. In conjunction with that view, noncyclical names (XLU, XLV) could be set for a comeback at the expense of cyclical sectors (XLV, XLB, XLE).
    | Comment!
  • May. 31, 2013, 2:49 PM
    Stocks turn lower (DIA -0.5%) 90 minutes ahead of the bell as Treasury prices tumble anew (TLT -1.2%), the 10-year yield gaining another 9 bps to 2.20%. The levered Treasury short ETF (TBT +2.5%) hits a 52-week high. Again hardest hit are the previously hot defensive sectors whose yields no longer stand so tall over Treasurys. Health care (XLV -1.1%), Consumer staples (XLP -1.1%). Utilities (XLU +0.1%) however, get a respite from an ugly month.
    | 6 Comments
  • May. 30, 2013, 4:58 PM
    The utilities sector (XLU +0.2%), up as much as 2% early after NV Energy (NVE +22.5%) agreed to be acquired by Berkshire Hathaway at a hefty premium, wound up surrendering the bulk of its gains. Utilities remain May's weakest performer, down 8.5%, as rising interest rates, optimism over economic growth and a downbeat reading on future electricity prices send yield-seekers rotating into cyclicals.
    | Comment!
  • May. 30, 2013, 3:22 PM
    The Utilities Select Sector ETF (XLU) - which outpaced the broader averages for much of the year - is on pace for its worst month since the dark days of February 2009, off 7.9% thus far. The steady dividend payers have been sought-after commodities for some time, but a 50 bp rise to 2.12% in May has the 10-year Treasury offering a bit of competition.
    | 2 Comments
  • May. 29, 2013, 11:15 AM
    Stocks tumble to session lows in late-morning trade, the DJIA (DIA -1%) off 168 points. Gravity continues to take hold of the previously-leading defensive sectors as their dividends are starting to face competition from Treasurys - Healthcare (XLV -1.7%), Utilities (XLU -1.9%), Consumer staples (XLP -1.8%). Residing in tech, but favored for its high dividend, Verizon (VZ -2.9%) is off about 5% from its gap open yesterday.
    | 3 Comments
  • May. 28, 2013, 2:59 PM
    If long-term Treasury yields keep rising, dividend-seeking investors in utilities (XLU -1.4%) will wonder how the lights went out for the sector, 24/7's Jon Ogg writes. The risk isn't only that investors may go elsewhere for yield; utilities have high operating costs and they borrow heavily to pay for infrastructure investments. Today's analyst downgrades only magnify what investors have to fear.
    | 5 Comments
IDU vs. ETF Alternatives
IDU Description
The iShares Dow Jones U.S. Utilities Sector Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of U.S. utilities stocks, as represented by the Dow Jones U.S. Utilities Index.
See more details on sponsor's website
Sector: Utilities
Country: United States
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