| Utility companies provide services so basic that | | | | The SPDR S&P International Utilities Sector EFT: |
| we tend to take them for granted: electricity, | | | | IPU tracks the S&P Developed Ex-U.S. BMI Utilities |
| natural gas, and water. It's only a slight | | | | Sector Index. This index specifically excludes U.S. |
| exaggeration to write that civilization as we know | | | | utility companies. Its number of holdings is |
| it in the modern world depends on them. | | | | sixty-one. IPU's expense ratio is 0.50%. |
| People in the developed world outside the United | | | | Its top holdings are E.On Ag (Germany), Gdf Suez |
| States also need large quantities of energy and | | | | (France), Iberdrola Sa (Spain), Rwe Ag |
| clean water. And just as in the U.S., utility | | | | (Germany), Enel Spa (Italy), Tokyo Electric Power |
| companies are making lots of money by providing | | | | Company Inc, National Grid PLC (United Kingdom), |
| those services. Demand for them may go down | | | | Centrica PLC (United Kingdom), Kansai Electric |
| during bad economic times, but it will never stop | | | | Power (Japan), and Scottish & Southern Energy |
| as long as people remain alive. | | | | (United Kingdom). |
| Many experts believe that in the near future | | | | There is obviously a huge overlap with JXI's top |
| electricity will be a resource more in demand than | | | | holdings. The only difference is that the two U.S. |
| oil. Building new coal and nuclear power plants is a | | | | utilities held by JXI have been replaced by a |
| top priority in China. | | | | company in Japan and one in the UK. |
| Now ordinary U.S. investors can simply and easily | | | | IPU's top holdings by country are Japan, Germany, |
| profit from investing in utility companies outside | | | | United Kingdom, France, Spain, Italy, Hong Kong, |
| the United States. | | | | Canada, Australia, Portugal, Finland, Austria, New |
| The S&P Global Utilities Sector Index Fund: JXI | | | | Zealand, and Switzerland. |
| tracks the S&P Global Utilities Index. Because it is | | | | Therefore there's no need to buy shares in both |
| a "global" fund, it includes U.S. utility companies. | | | | of these exchange traded funds. If you're also |
| About 38% of its seventy-six holdings are located | | | | buying shares in a U.S. only ETF, then IPU is the |
| in the U.S. Its expense ratio is 0.48%. | | | | obvious choice. If you buy JXI you'll get a 38% |
| Its top companies are E.On Ag (Germany), Gdf | | | | overlap. |
| Suez (France), Rwe Ag (Germany), Iberdrola Sa | | | | However, if you'd prefer to buy only one utility |
| (Spain), Enel Spa (Italy), Exelon Corporation, | | | | exchange traded fund, JXI gives you exposure to |
| Tokyo Electric Power Company Inc, Southern | | | | the entire world. |
| Company, National Grid PLC (United Kingdom), and | | | | The ETF sites don't say this, but you must |
| Centrica PLC (United Kingdom). | | | | assume that some of these utilities own and |
| At 38%, U.S. utilities are the largest single country | | | | operate nuclear power plants. For many years |
| held by JXI. The U.S. is followed by Germany, | | | | France has generated a large percentage of its |
| France, Japan, The United Kingdom, Spain, Italy, | | | | electricity from nuclear sources. This is also true |
| Hong Kong, Brazil, and Chile. | | | | of other European countries. |
| The last three countries are developing | | | | So long as humanity needs electricity to survive |
| economies, not developed. Including them gives | | | | and thrive, utility companies will remain a secure |
| investors the opportunity to profit from the | | | | investment. |
| greater growth potential of the developing world. | | | | |