Greetings!
Below please find the ETF Spotlight newsletter containing highlights of the research and data on www.etfresearchcenter.com as well as a recap of the past week's action in the ETF market.
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In this week's issue
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 Yields of the World's Utilities
- Chart of the week: Yields of the World's Utilities (2011E)
- Fund Focus: WisdomTree Int'l Utilities (DBU)
- Revisions, asset flows & short interest
- 2011 DPS estimates, payout ratios, and yields for major ETFs
- Market monitor - movers & categories
To download the full newsletter click here.
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| Chart of the week |
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Yields of the World's Utilities
With interest rates so low, investors are searching far and wide for securities that generate decent income. Traditionally, Utilities stocks have been one of the first places investors look for yield.
Of course, even among Utilities dividend payments vary widely. In this week's chart we rank the 11 Utilities ETFs we cover by yield on 2011 DPS estimates, finding a range from 3.5% to 5.5%. The "benchmark" $3.9 billion Utilities Select Sector SPDR (XLU) is in the middle at 4.5%. Not surprisingly, the two international funds are at the high end of the chart. The higher of the two, the WisdomTree International Utilities fund (DBU), is the subject of this week's Fund Focus.
Download the full newsletter here.
Chart: Yields of the World's Utilities
Yield on 2011E DPS (gross)
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| Fund Focus |
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WisdomTree International Utilities (DBU)
DBU has the highest yield of all Utilities ETFs we cover, and although the mostly European stocks which comprise the fund are providing power to weak economies, payout ratios are reasonable so dividend payments seem secure. Nevertheless, the apparent secular decline in Return on Equity (similar to what we see for U.S. Utilities) as well as for net margins, bears watching.
To download the full newsletter, click here.
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