OneEyedDiva
SF VIP
- Location
- New Jersey
I've had a utility fund for decades even though it's performance may not be as spectacular as other investments. I just invested in another one. I've read articles that tout utilities funds as good choices for bear (down) markets as they are considered "defensive investments". I've experienced the cushioning of the economic blow through bear markets. The advantages of ownership: Performance not necessarily correlated to market conditions, no matter what the economic environment is...people will need to use utilities. They pay usually healthy dividends and capital gains. Disadvantages: Rises in interest rates have negative impacts on these funds and according to the article below "Utility funds also face difficulty at times in passing along changes in energy prices efficiently to consumers and investors due to price regulations". I was wondering if anyone here has utility mutual funds or ETFs in his/her portfolio.
https://www.investopedia.com/articles/mutualfund/08/utility-funds.asp
https://www.investopedia.com/articles/mutualfund/08/utility-funds.asp