A Look at Three of Our Top-Read Blog Posts of 2021

January 4, 2022

Rethinking the traditional 60/40 allocation … the “greening” of the utility sector … and some stats that point investors to the most defensive pockets of the equity market. Three of our most-read blogs of 2021 remain big issues and focus on trends investors should be aware of as we begin the new year. You can read our three most popular blogs below.

Also, if you would like for us to cover a specific topic in 2022, we would love to hear from you. Just fill out the form on our contact us page and we will be in touch! 

Sincerely,
The Reaves Investment Team


One Chart May Illustrate the Trouble with a 40% Bond Allocation

2021.09 Reaves Blog Bond Allocation TwitterAs rates have steadily fallen since the 1980s, fixed income returns have dwindled … and dwindled … and dwindled. The chart below may put the diminishing return stream from bonds in perspective. It also invites several questions: With interest rates still near historical lows, what can investors expect from bonds in the next decade? And, if return projections are low, can investors still afford to dedicate 40% of their portfolio to the asset class, or is the traditional 60/40 stock and bond allocation mix due for a rethink? We believe such questions will be some of the most important for advisers and other asset allocators to consider over the next decade. Bonds will continue to play a role in diversified portfolios, providing downside protection and dampening volatility. 

Read More...


The Case for Utilities as an Impact Investment

2021.02 Reaves Blog 42 TwitterAs a growing subset of investors look for their assets to achieve both positive returns – and positive societal change – they may want to consider utilities. True, the industry doesn’t currently have the lowest carbon footprint. But perhaps no other sector provides a greater opportunity to have a direct influence on the world, especially as it relates to the environment. We believe this is due in large part to where these businesses are headed and the investments necessary to get them there. The argument may seem counterintuitive. ESG (Environmental, Social, and Corporate Governance)-labeled strategies, that typically appeal to investors wanting to affect change, tend to own companies that are considered to already have relatively minimal impact on the environment.

Read More...


Utilities Sector: Two Stats Investors Should Know

2021.09 Reaves Blog UTES Anniversary TwitterThis month, the Virtus Reaves Utilities ETF (UTES) celebrates its six-year anniversary. Just as it was six years ago, UTES remains the only ETF which applies active management to the selection of utilities stocks – a subset of the equity market that we believe investors should consider giving more attention. In our view, the unique, defensive characteristics of utilities sets them apart from much of the investable equity universe and warrants a specialized allocation to the sector. Those defensive characteristics are derived from the utility business model. Most utilities are capital intensive monopolies with extremely high barriers to entry, limited competition, and the ability to produce consistent, sustainable cash flows year after year.

Read More...


 

New call-to-action

 

Disclosures and Definitions:
Reaves Asset Management is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Registration does not imply any skill or training. Reaves is a privately held, employee-owned “S” corporation organized under the laws of the State of Delaware.

The information provided in this blog does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities and sectors listed. Investors should consider the investment objective, risks, charges and expenses of all investments carefully before investing. Any projections, outlooks or estimates contained herein are forward looking statements based upon specific assumptions and should not be construed as indicative of any actual events that have occurred or may occur.

Past results do not guarantee future performance. Further, the investment return and principal value of an investment will fluctuate; thus, investor’s equity, when liquidated, may be worth more or less than the original cost. This document provides only impersonal advice and/or statistical data and is not intended to meet objectives or suitability requirements of any specific individual or account.

All investments involve risk, including loss of principal.
All data is presented in U.S. dollars.
Cash is cash and cash equivalents.
An investor cannot invest directly in an index. 
Important Tax Information: Reaves Asset Management and its employees are not in the business of providing tax or legal advice to taxpayers. Any such taxpayer should seek advice based on the taxpayer’s own individual circumstances from an independent tax adviser.
Fees: Net performance reflects the deduction of advisory fees which are described in detail in our Form ADV Part 2A.
Please contact your financial professional, or click the following links, for a copy of Reaves’ Form ADV Part 2A and Form CRS.
Additional information about Reaves may be found on our website:  www.reavesam.com.
2022 © Reaves Asset Management (W. H. Reaves & Co., Inc.)

Receive insights about essential service infrastructure