1.iShares S&P/TSX Capped Utilities Index ETF
XUT.TO (TSX)
The iShares S&P/TSX Capped Utilities Index ETF (XUT) provides investors with diversified exposure to major Canadian utility companies, making it an ideal choice for those seeking reliable income through consistent dividends. With a solid dividend yield of 3.32% and a 1-year return of 6.54%, this ETF is well-regarded for its performance and stability. Investors can also appreciate its strong 5-year return of 11.17%, reflecting the resilience of the utility sector in the Canadian market.
Pros:
- Diversified exposure to major Canadian utility companies
- Monthly dividend distribution
Cons:
- Negative returns over the last 3 and 6 months
- Market sensitivity
2.BMO Equal Weight Utilities Index ETF
ZUT.TO (TSX)
The BMO Equal Weight Utilities Index ETF (ZUT) offers investors a balanced approach to Canadian utility stocks with equal weighting, making it an attractive option for those seeking broad sector exposure. With a solid dividend yield of 2.98% and impressive returns of 9.33% over the past year, this ETF is positioned well for income-focused investors. Its strategy emphasizes diversification within the utilities sector, which can provide stability in uncertain market conditions.
Pros:
- Broad sector exposure to Canadian utility stocks
- Monthly dividend distribution
Cons:
- Negative returns over the last 3 and 6 months
- Market sensitivity
The Global X Equal Weight Canadian Utilities Index ETF (UTIL) offers investors balanced exposure to the Canadian utility sector, emphasizing a dividend-focused strategy. This ETF is designed to provide equal-weight investments in utility services, making it an appealing choice for those seeking reliable income from financially sound companies. With no financial data available, potential investors should consider the ETF's focus on delivering consistent dividends as a key advantage.
Pros:
- Equal-weight exposure to Canadian utility services
- Focus on dividend
Cons:
- Sensitivity to interest rate fluctuations
- Recent daily dip in performance
Did you know?
The utilities sector offers income-oriented names on Canadian and US exchanges. Compare yield, rate sensitivity, and whether you want individual stocks or a sector ETF in your portfolio.
Final Words
As you consider the best utility stocks in Canada this October, remember to evaluate options like the Global X Equal Weight Canadian Utilities Index ETF and the iShares S&P/TSX Capped Utilities Index ETF. Take time to compare their performance and do your own research to ensure your investment aligns with your financial goals.
Frequently Asked Questions
The Global X Equal Weight Canadian Utilities Index ETF (UTIL) is a Canadian utility ETF that provides equal-weight exposure to Canadian utility services, focusing on dividends. As of late September 2026, it trades at $25.74 CAD.
The Global X Equal Weight Canadian Utilities Index ETF (UTIL) has experienced a recent daily dip of -2.09% or -$0.55, reflecting sensitivity to broader sector interest rate fluctuations.
Utility stocks are often considered stable investments due to their consistent demand and dividend payouts. They typically provide lower volatility compared to other sectors, making them a good option for risk-averse investors.
When selecting a utility ETF, consider factors such as dividend yield, expense ratios, historical performance, and the specific utilities included in the fund. It's also important to assess how the ETF fits into your overall investment strategy.
Utility ETFs generally perform better during economic downturns compared to other sectors due to the essential nature of utility services. Their stable cash flows and consistent dividend payments can make them a safe haven for investors during volatile times.
