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Water utilities undervalued; electricity and multi-utilities slightly overvalued, with risks in ETF performance and concentration.

Market News
18 Aug 2026
Seeking Alpha
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Neutral
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Fred Piard's analysis finds water utilities undervalued compared to their peers, while electricity and multi-utilities sectors appear moderately overvalued. The Virtus Reaves Utilities ETF (UTES) has outperformed the Utilities Select Sector SPDR ETF (XLU) in the long term but faces risks due to weaker fundamentals, recent underperformance, and concentration in holdings. Investors should consider these factors when evaluating utilities sector ETFs and individual stocks, especially as some stocks remain cheaper than their peers as of August.

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