European utilities: Thanks for the suggestion of RWEOY. I'm going to pass on that one for now because I already have a German one, (German based, but international in operations), your suggestion of EONGY. I have picked up a few shares of Italian/Spanish Enel at prices lower than currently. If the stock drops back, I'm looking to add more.
In researching RWEOY, I've come across S&P Global Utilities Sector Index Fund (JXI). JXI fees look to be .48%, and the etf doesn't appear to use leverage. Top ten holdings listed here:
etfconnect.com
I don't like that there's not much history, especially the dividends with JXI, although the underlying utility holdings should be solid. I also don't like that the etf's distributions seem to be paid semiannually, and they vary. I expect varying distributions from companies that pay using the European model. (by which I mean dividends are increased in good times, and if earnings are not good (i.e. drop), stockholders can expect the dividend will be cut.) On balance though, the 4.9% yield from a pack of utility stocks like this looks okay for me for a "mom" account. |
