Zacks Podcast Highlights: Rates Are Rising, Should Utility Sector Investors Be Worried?


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For Immediate Release

What Investors Can Expect from the Utility Sector in 2017

Chicago, IL - In this edition of the Dutram Report, we take a closer look at the utility market and what is in store for this traditionally safe sector in a rising rate environment. Should investors be worried or are more gains ahead? Tune in for some insights! To listen to the podcast, click here: ( https://www.zacks.com/stock/news/244422/what-can-investors-expect-from-utility-stocks-in-2017 )

After an up-and-down year in 2016, utility investors have to be wondering what is next for this market. Will higher rates pose a problem? Are certain companies in this market better positioned than others to take advantage of policies?

There are definitely a lot of questions, and given how this sector has moved into the limelight in recent months, investors need answers.

2017 Outlook

Well, to get some insights on this market, I spoke with Jay Rhame, the co-portfolio manager of the Reaves Utilities ETF, for some thoughts on where this sector is heading this year. In the wide-ranging interview, we discuss what happened to the utility space in 2016, why rates can have such a big impact, and if Trump will impact the utility sector directly.

I also pick Jay's brain regarding his company's fund, UTES, and what might set this apart for investors looking to go beyond the big funds in the space such as XLU or VPU. I was pretty skeptical on how an actively managed fund like UTES could set itself apart in a relatively small sector like utilities, but I think Jay won me over.

In particular, Jay discussed how the team at Reaves weeds out the tangentially-related companies in this market such as those in the telecom world, and how this gives Reaves a different exposure profile in the utilities market. Additionally, we also talk about how Rhame and his team use technical analysis and field research in order to find the best companies in this sector, potentially setting it apart from the rest of the space.

Bottom Line

If you thought the world of utilities was boring or not 'sexy' enough for most investors, you definitely need to give this interview a listen. It will most likely change your mind, like it did mine, about the market and where the potential in this space lies, even in a rising interest rate environment.

So, make sure to listen to this edition of the Dutram Report for a closer look at this often-overlooked, but potentially lucrative, segment of the equity world. And for more news and insights into the world of ETFs, make sure to be on the lookout for the next edition of the Dutram Report , and check out the many other great Zacks podcasts as well!

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VIPERS-UTIL (VPU): ETF Research Reports

SPDR-UTIL SELS (XLU): ETF Research Reports

REAVES UTIL ETF (UTES): ETF Research Reports

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: VPU , XLU , UTES


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