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Water utilities undervalued by 25%, gas and electricity slightly overvalued, ETFs offer similar options for investors.

Market News
16 May 2026
Seeking Alpha
View Source
Neutral
pluang ai news

Water utilities are currently undervalued by 25% compared to their 11-year averages, presenting a potential buying opportunity. In contrast, gas and electricity subsectors remain moderately overvalued. For long-term investors, the Vanguard Utilities ETF and Utilities Select Sector SPDR ETF provide nearly identical fees, valuation, growth, return, and risk profiles. XLU's higher trading volume suits tactical trading, while RSPU's equal weighting reduces company-specific risk. Additionally, 10 utility stocks were identified as cheaper than their peers in May, offering selective investment opportunities.

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