Best-In-Class Utility And Water ETFs

By Tom Lydon: Investors should keep tabs on ETFs tracking the utilities sector because they can provide important clues on overall risk appetite in the market.Utilities stocks are a traditionally defensive and stable that investors often favor when they're seeking safe havens to ride out market storms. When utilities ETFs are outperforming the market, it can mean investors are gun-shy. When they trail the market, investors are often in a risk-on mindset.

By Tom Lydon: The utility sector is a conservative investment in times of market instability. Focused exchange traded funds also offer a dividend stream, an important feature in this low-interest-rate environment. Utilities Select Sector SPDR (XLU) is one focused ETF that serves as a proxy for this segment in a portfolio.

Frank J. Constantino submits:The exchange traded fund industry has been happy to answer investor's calls for high yield investments in this low rate environment. The problem is that often these products come with hefty expense ratios, eating up a considerable amount of the distribution yield. Here are three high yield ETFs won't line management's pockets with most of your income.

By David Zanoni:Utilities provide an opportunity for a good dividend yield while simultaneously enjoying steady price appreciation. The Vanguard Utilities ETF (VPU) gives investors a basket of utility companies and pays a dividend of 3.59%. The fund is comprised of 54.8% electric utilities, 32% multi-utilities, 7.2% gas utilities, 3.7% independent power producers & energy traders, and 2.3% water utilities.

By Qineqt:The utilities sector ETF (XLU) replicates the yield and price performance of the S&P 500 index utility sector.

By Niklashausen:After the mini market crash of late July, early August, utilities ETFs enjoyed a bounce that lasted up until the end of the year. Since the beginning of 2012, however, utilities have been out of favor, moving solidly into negative ground. As of February 15, 2012, the three biggest utilities ETFs are down about -3.5% while SPY is up over 7%.

ETF Database submits: As evidenced by the volatile stock in recent months, many investors are unsure of exactly what to expect heading into the second half of the year. Stubbornly high unemployment levels have some predicting a double dip back into a recession, while strong earnings and expectations for continued low interest rates have given others hope that the economy will be able to pull through this rough patch and surge higher during the rest of 2010.

Paul Price submits:The Select Sector Utilities ETF (XLU) seeks to replicate the performance, net of expenses, of the Utilities Select Sector Index. The fund invests at least 95% of assets in common stocks that comprise the index. The index includes companies from the electric utilities, multi-utilities, independent power producers, energy traders and gas utility industries.