UTSL: An ETF To Avoid

Rahul Chahal
256 Followers

Summary

  • Utility sector has limited growth and high valuation.
  • The utility sector stocks have done better than most sectors in 2022, but the future returns are likely limited.
  • UTSL chart is not a good setup to go long, and neither are the top five stocks within the utility sector.

Electricity transmission towers with orange glowing wires against night sky.

Artur Nichiporenko

Background

The utility sector index includes large companies that either offer multiple services or specialize in one of services that include electricity, natural gas, water, renewable and other services. Utilities are associated with stable prices, consistent dividends and less volatility than the overall

This article was written by

256 Followers
20+ years experience investing in stocks, ETFs, real estate and other financial instruments. My career background before devoting myself full time into investment was in risk management for major US financial institutions. I plan to write about investment opportunities that are not common knowledge or have not been covered recently.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article is for information purposes and not a recommendation to buy or sell any securities. Due your own due diligence. When it's your money, then you own the risk.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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