IDU: Utilities Dashboard For December

Fred PiardInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryWater utilities are undervalued by 18% versus 11-year averages, while electricity/multi-utilities and gas utilities are slightly overvalued.iShares U.S. Utilities ETF offers similar long-term risk/return as XLU, despite higher fees and broader sector exposure.XLU is preferable for trading and tactical allocation due to higher liquidity, while RSPU offers more balanced company exposure.10 utility stocks were cheaper than their peers in December. mgstudyo/iStock via Getty Images This monthly article offers a top-down view of the utilities sector based on value, quality, and momentum metrics. It may also help analyze sector ETFs such as Utilities Select Sector SPDR Fund ETF (XLUThis article was written byFred Piard16.24K FollowersFollowFred Piard, PhD. is a quantitative analyst and IT professional with over 30 years of experience working in technology. He is the author of three books and has been investing in data-driven systematic strategies since 2010. Fred runs the investing group Quantitative Risk & Value where he shares a portfolio invested in quality dividend stocks, and companies at the forefront of tech innovation. Fred also supplies market risk indicators, a real estate strategy, a bond strategy, and an income strategy in closed-end funds. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.