PSR vs UTES

PSRAInvesco Active U.S. Real Estate ETF

UTESBVirtus Reaves Utilities ETF

In short

PSR Active REIT stock-picking without the active price tag: since 2008, PSR has run a tight book of about 30 US property names for 0.35% a year, roughly half the median fee among active US equity ETFs.

UTES Utilities, but stock-picked. UTES has run an active, value-driven, bottom-up portfolio of electricity, gas and water companies since 2015, at a fee below what the typical active US equity ETF charges.

Stated mandate

PSR The Fund seeks high total return through capital appreciation and current income, investing principally in equity real estate investment trusts.

UTES The Fund seeks total return from capital appreciation and income.

Why people hold it

• PSR 0.35% a year against a 0.65% median for active US equity ETFs. Active management without the usual active-management markup.
• Running since 2008, across multiple rate regimes and property cycles, and it sits in the upper half of its active US equity peer group.
• Concentrated by design: about 30 equity REITs, so each holding carries real weight instead of being diluted across the entire property market.invesco.com
• The mandate targets capital appreciation plus current income from equity REITs, and the fund distributes quarterly.invesco.com

• UTES Real stock picking in a quiet sector: a value-based, bottom-up process hunting utility names with room for income growth and capital appreciation.
• The 0.49% fee undercuts the 0.65% median for active US equity ETFs in its peer group, so the manager isn't digging out of a cost hole.
• Live since 2015 and now a billion-dollar-plus fund that trades easily, it sits in the upper half of its active US equity peer group.
• Pays on a quarterly schedule, matching a mandate that chases total return from both capital appreciation and income.

Worth knowing

• PSR Thinly traded. Spreads can widen and larger orders can move the price more than they would in a heavily traded index fund.
• One sector, one economy: US property. When rates jolt REITs, the portfolio has no other sector to lean on.
• Assets stay modest next to the giant index REIT funds, and smaller ETFs generally face a higher bar to stay open over the long haul.

• UTES At least 80% of assets sit in companies tied to generating or distributing electricity, gas or water. This is one sector, not the whole market.
• Cheap for active, pricey next to the broad index-style leaders in its cohort such as DFAU (0.12%) and AVLC (0.15%).
• No declared index behind it. The portfolio reflects the manager's judgment, so there's no benchmark to grade tracking against.

Full PSR profile⁠

Full UTES profile⁠