Horizons ETFs Management (Canada) Inc. announced Aug. 10 the launch of the Horizons Canadian Utility Services High Dividend Index ETF. Units of the ETF are trading on the Toronto Stock Exchange under the ticker symbol UTIL.
The company says that with UTIL, investors can gain Canadian exposure to three major segments of the utility services sector: utilities, pipelines and telecommunications. These segments have historically functioned as defensive industries, offering investors relative stability and consistent dividends, even during periods of volatility and bear markets, says Horizons.
"With rising inflation, investors are increasingly looking towards dividend and yield-focused strategies to outpace costs and stay ahead in their portfolios. However, with the spectre of a potential recession on the horizon, investors are also looking for these income-producing mandates to provide some protection from a broader market decline," said Steve Hawkins, President and CEO of Horizons ETFs. "Traditionally, utility services have been regarded as a relatively defensive sector of the stock market, as their services – including electricity, oil and internet – are always necessary."
Currently, UTIL seeks to replicate the performance of the Solactive Canadian Utility Services High Dividend Index, net of expenses.
