Mutual Funds/Sector Investing

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Question
Hello:

I have a utilities fund that I would like to compare to another utilities index to measure its performance.  Is there such an index other that the S & P 500?

I thank you for your reply.

Answer
Hi Kenneth--

There's the Dow Jones Utility Index, created in 1929.

Components:

AES Corp., The (AES) (conventional electricity)
American Electric Power Co., Inc. (AEP) (conventional electricity)
CenterPoint Energy, Inc. (CNP) (multiutilities)
Consolidated Edison, Inc. (ED) (conventional electricity)
Dominion Resources, Inc. (D) (conventional electricity)
Duke Energy Corp. (DUK) (multiutilities)
Edison International (EIX) (conventional electricity)
Exelon Corp. (EXC) (conventional electricity)
FirstEnergy Corp. (FE) (conventional electricity)
NextEra Energy Inc. (NEE) (conventional electricity)
NiSource, Inc. (NI) (gas distribution)
PG&E Corp. (PCG) (conventional electricity)
Public Service Enterprise Group, Inc. (PEG) (conventional electricity)
Southern Company, Inc. (SO) (conventional electricity)
Williams Companies, Inc. (WMB) (pipelines)

The index is, unfortunately, price-weighted. Meaning that the price of a stock affects its influence on the index. So, if a stock splits 50-50, it loses half its influence.

I hope this helps.

WB

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Warren Boroson

Expertise

Author of "Keys to Investing in Mutual Funds" (Barrons), "Ultimate Mutual Fund Guide" (Probus), "How to Pick Stocks Like Warren Buffett" (JKLasser), and "The Reverse Mortgage Advantage" (McGraw-Hill). Former financial columnist for Gannett News Service.

Experience

Author of 20 books; winner of 1996 Personal Finance award from Investment Company Institute and Washington University. Formerly on staffs of Money and Sylvia Porter's Magazine. Had a radio program (on WEVD) about mutual funds and a newsletter, FundDigest.

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