- IDU holds 44 utilities stocks across all market cap sizes. However, its fees are 0.41% annually, directly reducing yield to just 2.28%.
- Utilities are a hot sector right now and there are reasons to believe outperformance will continue even as interest rates rise. This article presents other factors affecting performance.
- Compared with the cheaper XLU, IDU is more volatile and has better growth potential, but likely not enough to offset the added fees. Therefore, my rating is only a hold.
For further details see:
IDU: iShares U.S. Utilities ETF, Solid Pick, But Not The Best