IDU: Utilities Dashboard For July

  • This article provides a top-down analysis of the utilities sector based on valuation, quality, and momentum metrics. Water utilities are undervalued by 17% versus 11-year averages, while electricity/multi-utilities are overvalued by 13%. IDU and XLU ETFs have nearly identical long-term returns and risk, but XLU's lower fees and higher liquidity make it preferable for most investors.