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BMO Equal Weight Utilities Index ETF (ZUT $25.89)
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Harvest Equal Weight Global Utilities Income ETF (HUTL $18.64)
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Hamilton Enhanced Utilities ETF (HUTS $14.41)
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Evolve Canadian Utilities Enhanced Yield Index Fund (UTES $9.47)
Q: Hi fellows,
Looking for a utilities ETF for a growth portfolio.
What do you think of HUTS-T, HUTL-T, UTES-n (Virtus Reaves Utilities ETF)?
Any other coming to mind?
Many thanks,
Jacques IDS
Looking for a utilities ETF for a growth portfolio.
What do you think of HUTS-T, HUTL-T, UTES-n (Virtus Reaves Utilities ETF)?
Any other coming to mind?
Many thanks,
Jacques IDS
5i Research Answer:
Generally, utilities are not seen as a 'growth' sector. HUTS uses 25% leverage, so returns can be enhanced when things are working. We are comfortable with it. HUTL is equal weight, and global, and sells calls on 33% of the portfolio. It may provide more growth as 67% of the fund is not covered by options. We like its global exposure as well. UTES is also leveraged and uses call options. These types of funds will lag in a sector rally. Overall, we would be fine with HUTL, and ZUT we think can work for more 'growth' as opposed to income-focused products.