Reaves Utilities
ALTAR
Score™
4.0% info Recommen-
dation
UNDERWEIGHT
2019E    2020E
P/E
ratio
24.1x P/Sales
ratio
2.5x
P/BV
ratio
2.4x Div.
yield
2.5%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
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
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 %
Total 62.4 %

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 info ** ** ** ** ** ** **
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 %
info 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.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.