Dividends4Life: A Solid Dividend ETF In A Defensive, Growing Industry

A Solid Dividend ETF In A Defensive, Growing Industry

Posted by D4L | Wednesday, September 05, 2012 | | 0 comments »

Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the utility industry to thrive over time as our growing population keeps requiring more and more power, the Utilities Select Sector SPDR ETF (NYSE: XLU ) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.

ETFs often sport lower expense ratios than their mutual fund cousins. The utilities ETF's expense ratio -- its annual fee -- is a very low 0.18%. It recently yielded around 3.7% in dividends as well. This ETF has performed rather well, topping the world market over the past three, five, and 10 years. As with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver. With a low turnover rate of 3%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.

Source: Motley Fool

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