Fuel Prices, Falling Rates Boost Utility Funds

Mild weather, ample supplies of natural gas and a correction in crude oil prices gave utility funds a boost this past week.

These funds, which hold stocks, preferred stocks and bonds of utility companies, and also benefitted from expectations that the Fed could cut rates again.

Falling interest rates tend to boost prices of securities that pay fixed rates of return, by making their rates appear relatively more attractive.

Excluding the funds shorting the sector, the average utility fund tracked by TheStreet.com Ratings rose 2.23% in the five trading days following the Thanksgiving holiday. ...