FUTY - IDU: Not At A Discount Right Now
2024-06-03 02:32:00 ET
Summary
- iShares U.S. Utilities ETF has a high expense ratio compared to its peers, making it less attractive for investors.
- IDU has outperformed the broader market year-to-date, but its long-term performance has been inferior to the S&P 500 index.
- IDU's fund price is sensitive to the change in treasury rate.
ETF Overview
iShares U.S. Utilities ETF ( IDU ) has a portfolio of large-cap and mid-cap utility stocks in the United States. Its expense ratio of 0.4% was high among its peers. For example, Fidelity MSCI Utilities ETF ( FUTY ) only has an expense ratio of 0.08%. While IDU has lower volatility, the fund will likely deliver a total return inferior to the broader market in the long run due to its slower growth characteristic. Its valuation is also not cheap right now. Hence, we are unable to recommend this fund right now....
IDU: Not At A Discount Right Now