ETF Research Center

The Reaves Utilities ETF is an actively managed ETF that holds US-listed utility stocks. UTES’ managers aim to outperform the sector by selecting and weighting stocks based on fundamental, growth and risk metrics.

FUND BASICS
Category	US Equities
Fund Sponsor	Virtus
Website	www.reavesetfs.com
Inception date	Sep 23, 2015
Assets (mns)	$37
Currency	USD
Expense ratio	49 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian
Weighting	Proprietary
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	25
Wgt avg mkt cap (mns)	$36,378
Large cap (>$10bn)	73.5%
Mid cap ($2-10bn)	24.5%
Small cap (<$2bn)	2.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	62.4 %
NEXTERA ENERGY GROUP	18.9 %
SEMPRA ENERGY	6.6 %
PUBLIC SERVICE ENTERPRISE GP	5.6 %
CMS ENERGY CORP	5.0 %
NISOURCE INC	4.9 %
NEXTERA ENERGY PARTNERS LP	4.7 %
SOUTHWEST GAS CORP	4.6 %
DTE ENERGY COMPANY	4.5 %
EDISON INTERNATIONAL	3.9 %
ATMOS ENERGY CORP	3.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.5 %
	CANADA	3.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
25.5%	25.5%	--	--	14.6%

Market Correlations
versus...	Beta	R-squared
S&P500	0.22	8%
MSCI EAFE	0.19	5%
MSCI Emg. Mkts.	0.10	2%

Technical Indicators
Recent close	$42.96
30d moving avg.	$41.08
Annualized volatility	9.6%
Short interest (ETF)	3.9%
Relative strength (RSI)	73

Liquidity measures
Avg. volume (thou.)	8
Turnover	0.9%
Bid/Ask (% of price)	0.19%
ADV underlying (mns)	$2,738

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the Reaves Utilities ETF based on the alternatives' overlap in portfolio holdings with UTES. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

UTES

Expense:

49 bp

ALTAR Score™:

4.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH UTES
Ticker	Fund Name	Overlap¹ vs UTES (%)	Expense ratio (bp)	Savings vs UTES (bp)	ALTAR Score™ (%)	ALTAR vs UTES (%)
XLU	Utilities Select Sector SPDR	53.4	13	36	4.8	+0.9
RYU	Invesco S&P Equal Weight Utilities	53.0	40	9	4.7	+0.8
IDU	iShares DJ US Utilities	51.7	43	6	4.5	+0.6
FUTY	Fidelity MSCI Utilities	50.3	8	41	4.8	+0.8
VPU	Vanguard Utilities ETF	50.1	10	39	4.7	+0.8
JHMU	John Hancock Multifactor Utilities	49.2	40	9	4.8	+0.8
ECLN	First Trust EIP Carbon Impact	48.4	95	-46	3.1	-0.9
JXI	iShares S&P Global Utilities	37.3	46	3	4.9	+1.0
PUI	Invesco DWA Utilities Momentum	33.0	60	-11	3.8	-0.1
EMLP	First Trust N. American Energy Infrastructure	31.7	95	-46	4.6	+0.7
FXU	First Trust Utilities Alphadex	26.2	63	-14	5.1	+1.2
GII	SPDR FTSE/Macquarie Global Infrastructure	19.7	40	9	4.6	+0.7
IGF	iShares S&P Global Infrastructure	19.7	46	3	4.5	+0.6
DVOL	First Trust Dorsey Wright Momentum & Low Volatility	18.6	60	-11	4.2	+0.3
SPLV	Invesco S&P 500 Low Volatility	18.4	25	24	5.0	+1.0
IFRA	iShares U.S. Infrastructure	17.7	40	9	5.2	+1.2
DWEQ	AdvisorShares Dorsey Wright Alpha Equal Weight ETF	17.6	99	-50	3.4	-0.5
LVHD	Legg Mason Low Volatility High Dividend ETF	17.3	27	22	6.6	+2.6
DVY	iShares Select Dividend	16.8	39	10	7.7	+3.7

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Reaves Utilities
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	10.0	%
Divided by: Fwd. P/BV	2.3	x
Less: Expense ratio	49	bp
Equals: ALTAR Score	4.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.53	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.