BMO Equal Weight Utilities Index ETF (ZUT.TO)

Unfortunately, when interest rates are rising, utilities tend not to do well because they will not raise their dividends as fast as a bank would. Wouldn’t expect this one to do much of anything.

Down about 4% on the year, hurt by interest rate environment. Utilities are a relatively small part of the Canadian stock market. It will be hurt with the rate hike.

It is getting down to the point where it is just getting interesting. At some point they and REITs get interesting.

(A Top Pick April 5/13. Down 2.96%.) There is kind of a tendency for this to move between $15 and $16 and has a big dividend of about 5%. Doesn’t think this indicates a disaster in the making, so he has not sold his holdings.

(Top Pick Apr 5/13, Up 3.08%) Defensive. Somewhere to hide out. He will hold it.

Utilities have done really well up until this point. People have been rushing in to try to get yield. Not a bad spot to be hiding in right now. The real strength of utilities comes up later on in July but the chart shows good support at around $15.

Got battered by Atlantic power. Prefers ZWU-T, which had covered calls on the individual utilities.

Everyone wants the safety of, and higher dividend of, this sector. It is not a growth sector because of regulation. He thinks it is very expensive in this sector right now and will stay that way because of the preference for dividends. Likes the idea but it could be weaker in the short term, in which case accumulate.

13 positions. Two have been real headliners. Both were decimated. The rest of the companies are high quality holdings. In the summer utilities tend to do ok as well.

Buy more Algonquin Power (AQN-T) or buy BMO Equal Weight Utilities Index (ZUT-T)? ZUT gives you more diversification so he would unload Algonquin Power and buy ZUT. This will take the risk out of the equation.

Equally weighted. Likes it. Was hurt by a couple of names. Not without volatility.

(A Top Pick Dec 7/12. Up 4.4%.) Typically this trades around $16.10-$16.20 a share. Good dividend.

Likes it. Only one that writes covered calls against a basket of utility stocks. Return in the high 6% or low 7% range. Are not paying much back in terms of return of principle

Utilities is a low beta sector. This one pays about 5% in dividend. It’s now at its support level.

Likes this one. It gives a reasonable yield. Normally with utilities, he likes the idea of having Covered Calls on it.