iShares US Utilities ETF

IDU

Market cap $1.72B

As AI-fueled gains spark bubble warnings, investors are eyeing defensive ETFs in consumer staples, utilities and healthcare for safety.

The artificial intelligence sector is showing critical warning signs that suggest a significant correction may be approaching. Recent market analysis reveals that AI stocks, particularly the “Magnificent Seven,” have been making lower highs since December 2024, diverging from broader market performance – a pattern that historically precedes major corrections.

AI's energy-hungry data centers are fueling a surge in utility ETFs, with funds like XLU, VPU, IDU, and FUTY outpacing sector growth.

Launched on June 12, 2000, the iShares U.S. Utilities ETF (IDU) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Broad segment of the equity market.

IDU hits a 52-week high, fueled by a rare seven-month utility rally and growing investor interest in sector momentum.

This article provides a top-down analysis of the utilities sector based on valuation, quality, and momentum metrics. Water utilities are undervalued by 17% versus 11-year averages, while electricity/multi-utilities are overvalued by 13%. IDU and XLU ETFs have nearly identical long-term returns and risk, but XLU's lower fees and higher liquidity make it preferable for most investors.

Looking for broad exposure to the Utilities - Broad segment of the equity market? You should consider the iShares U.S. Utilities ETF (IDU), a passively managed exchange traded fund launched on 06/12/2000.

Launched on 06/12/2000, the iShares U.S. Utilities ETF (IDU) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Broad segment of the equity market.

Evaluating iShares U.S. Utilities ETF as a solid investment option due to its exposure to U.S. utility companies offering essential services. IDU's defensive posture is beneficial amid broader equity valuation concerns, making it a reliable choice for cautious investors. The fund's performance has been strong, validating previous recommendations and highlighting its stability in uncertain market conditions.

Look at ETFs to safeguard your portfolio as declining consumer confidence, sluggish growth and persistent inflationary pressures increase the likelihood of the U.S. economy slipping into a recession in 2025.