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The iShares S&P/TSX Cap. Utilities ETF (XUT-T) is gaining attention among experts for its stability in a low-volatility environment. While it does not provide as much premium on options compared to sectors like oil and gas, it stands out due to its reasonable valuations. Many experts advocate for investing in both XUT-T and ZWU-T, emphasizing a balanced approach. This dual strategy allows investors to benefit from the upside potential of XUT while still enjoying the covered call income from ZWU. Overall, utilities are viewed as a strong sector in the current market landscape, making XUT-T a compelling addition to a diversified portfolio.
Utilities are a very low-volatility sector, so the premiums are lower compared to oil/gas. He suggests holding both this and ZWU-T. Utilities are a top sector, because valuations are so reasonable (hard to find that in this market). ZWU will give you covered calls, but XUT will give you upside. So, own both, half and half.
XEI has a fair exposure to the overall business cycle with broad based holdings. You want to focus on areas of the market that have less impact from issues in the financial markets. He would opt more for a utility ETF (XUT) that is more of a regulated sector with a agreed return on capital and more likely to be sustained.
An ETF for utilities. A great defensive sector with amazing performance lately. XUT-T is good, but 60% is in the top 4 holdings (inculding Fortis and Algonquin); 4% yield and 55 basis point cost. ZUT-T is more diversified and equal-weight. ZWU is also equal weight but does covered calls to create extra income, which sells future income for gains today; yields 6%. Given the strong performance of utilities in the past year, covered calls have lagged.
Although you get pretty good yields of around 4%, interest rates are moving higher, and yields are moving higher on the 5 year and 10 year, which is going to have an effect on utility companies. Utility companies generally are not good dividend growers. If they can grow their dividends, they are going to be affected from a capital appreciation/capital depreciation standpoint on their prices. He is not a big fan of utilities at this point.
iShares S&P/TSX Cap. Utilities is a Canadian stock, trading under the symbol XUT-T on the Toronto Stock Exchange (XUT-CT). It is usually referred to as TSX:XUT or XUT-T
In the last year, 3 stock analysts published opinions about XUT-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for iShares S&P/TSX Cap. Utilities.
iShares S&P/TSX Cap. Utilities was recommended as a Top Pick by on . Read the latest stock experts ratings for iShares S&P/TSX Cap. Utilities.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered iShares S&P/TSX Cap. Utilities In the last year. It is a trending stock that is worth watching.
On 2025-08-08, iShares S&P/TSX Cap. Utilities (XUT-T) stock closed at a price of $30.73.
Utility index holding about 15 names including FTS, EMA, and H. Very defensive, low beta (about half that of the TSX). Not a bad place to be for the income-focused investor looking for stability. Longer term, if interest rates move higher, then valuations and prices will come down. Risks for utilities include regulatory decisions and capex overruns.
Not a sector he likes or holds right now. This ETF (38%) has underperformed the TSX (95%) over last 5 years. Yield is ~3.9%.