Reaves Utility Income Fund (UTG)

If you're a retiree or if you're planning to be one, it's very worthwhile to have exchange-traded funds (ETFs) in your portfolio.

Caring about dividends can increase our returns, but caring about NAV can save our portfolio. Return and NAV protection must go hand in hand, because there can be no sustainable return without protecting the value of the underlying assets. As far as I am concerned, the way to protect my portfolio is to favor only securities with a positive NAV over time.

Reaves Utility Income Fund is a utility sector-specific closed-end fund that invests in a fairly diversified portfolio of common stocks of utilities and infrastructure companies. UTG has delivered strong long-term returns and consistent, growing distributions, making it a top choice among utility-focused closed-end funds. The fund is currently overvalued after a 40%+ rally in the last year, so future gains may be limited; the current yield is about 6.2%.

UTG remains a HOLD as its risk/reward profile is well balanced despite recent price rallies and a yield below historical averages. The fund's US-focused utility exposure positions it well for potential policy shifts favoring domestic energy and infrastructure. Another favorable development is the increased odds of interest rate cuts.

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DENVER, CO / ACCESS Newswire / July 31, 2025 / On July 31, 2025, the Reaves Utility Income Fund (NYSE American:UTG) (the "Fund"), a closed-end sector fund, paid a monthly distribution on its common stock of $0.20 per share to shareholders of record at the close of business on July 18, 2025. The following table sets forth the estimated amount of the sources of distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended, and the related rules adopted thereunder.

The S&P 500 provides a meager 1.2% yield, besides a roller-coaster ride on a regular basis. It may be a reasonably good investment for younger investors when they are in their prime accumulation phase. If you are a retiree or someone who depends on a regular income stream from your investment portfolio, the last thing you want is to worry about when to sell shares to raise income. We will present a balanced and highly diversified 3-bucket portfolio that is likely to provide 5% to 6% income and market-beating growth with lower volatility and less drawdowns. It will also provide $5,000 on a monthly basis on a $1 million capital.

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UTG is more U.S.-focused and utility-heavy, ideal for data center-driven electricity demand growth. UTF has higher leverage, more international exposure, and stronger historical total returns over 10 years. Both funds offer stable monthly income, but UTG has a lower NAV premium than UTF.

UTG offers a stable and reliable monthly income (annual yield 6.67%), with NAV preservation but limited capital appreciation—ideal for income-focused investors. The fund's active management, sector diversification, and exposure to renewables and international utilities set it apart from traditional utility ETFs. Performance outpaces peers like XLU and VPU in recent years, but higher leverage increases volatility and requires patient, long-term holding.