Foreign Utility Funds – An Intro !!

Foreign Utility Funds:

There are NO mutual funds that invest exclusively in foreign utilities.

However there are a few domestic utility mutual funds that have a high percentage of portfolio exposure to foreign utilities. So if you want to invest in utilities abroad, this may be an option.

The following are some of those mutual funds:

1.Eaton Vance Utilities/ Dividend Builder A (EVTMX) – Has plenty of foreign exposure. A few months ago had some 40% on foreign utilities.

2.MFS Utilities Fund/I (MMUFX) – Had some 31% of portfolio in foreign utilities

3.AllianceBern Utility Income Adv (AUIYX) – Has some exposure to foreign utilities

Other mutual funds for review:
4. Franklin Custodian Fds:Utilities Series/Adv – FRUAX
5. Jennison Utility Fund – PRUZX
6. FBR Gas Utility Index Fund – GASFX
7. ProFunds:Utilities Ultrasector/Inv – UTPIX
8. American Century Utilities Inv – BULIX

Another option is to invest via ETFs. There are two ETFs in the market that concentrate on utilities in other countries. They are :

1. iShares S&P; Global Utilities Index Fund – JXI
This utility ETF has an asset base of $175 M and an yield of 9.27%. The expense ratio is 0.48%. Portfolio has some 68 stocks and the German utility giant EON AG is the largest holding.

The ETF has US utilities as well.Last year the fund returned just over 22% and the 5 year average annual return is over 26%.

More info. on this ETF can be found here:

This ETF is a STRONG BUY now.The ETF has fallen from over $72 to the current price of $62+.

2. WisdomTree International Utilities Sector Fund – DBU
This one has assets of over $32 M. The big European countries of Spain,France, Germany, Italy and UK form the majority in the portfolio.


A list of such stocks can be found here:

The above site has Canadian utility stocks listed in NYSE, ADRs of European Utilities, Brazilian utilities etc.

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