What is the expense ratio of IDU?

The expense ratio is 0.39%, which is relatively low compared to sector funds.

Is IDU a defensive investment?

Yes, the utilities sector is defensive by nature, as demand for essential services remains stable even during economic downturns.

Analysis: Should You Invest in the iShares U.S. Utilities ETF (IDU)?

This report examines the iShares U.S. Utilities ETF (IDU) managed by BlackRock, highlighting its focus on the utilities sector and its role as a defensive investment.

July 20, 2026

1 min read

Source: Zacks

The iShares U.S. Utilities ETF (IDU) from BlackRock offers broad exposure to the U.S. utilities sector, making it a popular choice for investors seeking stable returns and lower risk. The fund tracks the Dow Jones U.S. Utilities Index and includes leading companies in electricity, gas, and water.

Fund Details

Issuer: BlackRock
Ticker: IDU
Expense Ratio: 0.39%
Dividend Yield: Approximately 2.5% (subject to change)
Top Holdings: NextEra Energy, Duke Energy, Southern Company

Context

The utilities sector is considered defensive, often performing well during economic uncertainty due to consistent demand for essential services. However, rising interest rates can pressure valuations.

What It Means for Investors

IDU is suitable for investors looking to diversify their portfolio with low-volatility assets. However, sensitivity to interest rate changes and regulatory developments should be considered.

Frequently Asked Questions

It is an exchange-traded fund from BlackRock that tracks the performance of the U.S. utilities sector, focusing on electricity, gas, and water companies.

Found this useful? Share it

This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.