Why VPU Works For Utilities, But You Might Want More

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  Posted by Two Blokes Jul 1 - Filed in Stock - 5 views
  
  Utilities sector suits passive investing due to low growth, regulation, and limited alpha from stock picking—making ETFs like VPU a viable choice. VPU offers better diversification than XLU, but sub-sector exposure remains concentrated in electric utilities, limiting exposure to renewables and water utilities. VPU provides stable 3% yields and reliable returns, with performance comparable to peers and resilience during market drawdowns.