Roger S. Conrad

Morningstar (NSDQ: MORN) recently reported that 247 mutual funds suffered outflows of at least 10 percent over the past year, with 18 losing more than 40 percent of their assets under management. Redemptions on this scale usually occur toward the end of a bear market, when many investors throw in the towel. This hemorrhaging stems from the growing belief that passive investment strategies involving exchange-traded funds (ETF) will outperform an active management over the long haul. Lower fees also help to bolster overall returns. Of course, ETFs and other products that offer one-stop exposure to a particular sector or theme often weight their positions by market capitalization. Utilities Select Sector SPDR (NYSE: XLU), for example, rebalances its holdings quarterly and exhibits a bias toward stocks that have already run up. At last check, NextEra Energy (NYSE: NEE), which trades at a record 21 times trailing earnings, accounted for 9 percent of the ETF’s portfolio. And the instant diversification offered by ETFs mean that you’ll always own the good, the bad and the ugly, which dilutes the best performers’ contribution. But discriminating investors can take advantage of the rise of ETFs.  

The hubbub surrounding the unveiling of Tesla Motors’ Model S has resulted in a bumper crop of articles about the ascendancy of electric vehicles and reduced demand for fossil fuels. These headlines attract eyeballs, but they don’t necessarily shed light on the best opportunities for investors who want to profit from the long-run success of electric vehicles.

With utility stocks trading at frothy valuations, investors should consider taking some profits off the table in their big winners and exiting any higher-risk names to raise dry powder for future buying opportunities.

A transformative acquisition lands this former Aggressive Income Portfolio holding in the Conservative Income Portfolio.

Two companies in our coverage universe cut their dividends last month. We look at what went wrong and add four names to our Endangered Dividends List.

During the gold rush, companies that supplied the picks and shovels to the diggers reaped the biggest profits. And no “equipment” is more important to the development of America’s renewable-energy future than money.

Roger Conrad will host an exclusive Live Chat for Conrad's Utility Investor subscribers on April 12, 2016, at 2:00 p.m.

Investors prize utility stocks for their resilience, but don't overlook their upside exposure to several secular growth trends--including the electric car's long-term potential.

All our Portfolio holdings have reported results for the quarter ended Dec. 31, 2016. We review how the latest batch fared and their outlook for 2016.  

The DC Public Service Commission finally approved Exelon Corp's acquisition of Pepco Holdings.