Put Your Long-term Dollars in Utilities

Buy iShares Dow Jones Utilities Index Fund on break below 50-day moving average.

iShares Dow Jones Utilities Index Fund (NYSE:IDU) — This ETF seeks to mimic the return of the Dow Jones Utility Index. At least 90% of its assets are in depository receipts that represent the index. And the index is composed of electricity, gas, water stocks, etc.

Last year, this ETF had a return of 18.6%. It currently pays a dividend of $2.90, providing a dividend yield of 3.37%.

Technically IDU is in a powerful bull channel, which keeps pace with its 50-day moving average. It is resting on that line now, and so any break below it would be an excellent opportunity to make a long-term investment in the utility sector.