The Fidelity MSCI Utilities Index ETF (FUTY) is positioned for double-digit returns in 2026 and beyond, driven by explosive electricity demand growth. FUTY benefits from a sector-wide 29% capex surge, blockbuster mergers like NextEra and Dominion, and robust earnings forecasts across top holdings. The ETF offers broad utilities exposure, a 2.60% dividend yield, lower-than-market P/E ratios, and a low 0.08% expense ratio, supporting long-term value.
Gas utilities are near historical value and quality baselines, water utilities are undervalued by 21%, while electricity and multi-utilities are overvalued by 14%. Fidelity MSCI Utilities Index ETF closely tracks the benchmark XLU in risk-adjusted returns, but XLU has an edge in liquidity, valuation, and growth metrics. 10 stocks are cheaper than their peers in June.
Looking for broad exposure to the Utilities - Broad segment of the equity market? You should consider the Fidelity MSCI Utilities Index ETF (FUTY), a passively managed exchange traded fund launched on October 21, 2013.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| KW Kevin Warman INVESTMENT MANAGEMENT Corp. /VA/ /ADV | 23,653 | $1.16M | $1.39M | $228,409.93 | 19.63% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 27,317 | $1.31M | $1.6M | $289,684.21 | 22.07% |
| AC Adam Claypool First Community Trust Na | 37 | $2,186 | $2,167.09 | -$18.91 | -0.87% |
| YA Yinka Akinsola Blue Trust Inc. | 134 | $7,346.18 | $7,881.21 | $535.03 | 7.28% |
Jeff Ameen Spire Wealth Management | 353 | $17,442.46 | $20,798.76 | $3,356.3 | 19.24% |
| ARCA Exchange | US Country |
The company operates as an investment fund, specifically targeting the utilities sector within the U.S. equity market. It dedicates at least 80% of its assets to securities that are part of its underlying index, the MSCI USA IMI Utilities 25/50 Index. This approach highlights the company's focus on investments that reflect the performance of the utilities segment, providing investors with targeted exposure to this sector. The fund's strategy is not to diversify widely but to concentrate on the utilities sector, offering a specialized investment option to its shareholders.
The fund primarily invests in securities that are included in the MSCI USA IMI Utilities 25/50 Index. This index is designed to capture the performance of the utilities sector of the U.S. equity market, providing investors with an opportunity to gain exposure to this specific segment. The index includes companies across various utilities segments, reflecting the sector's diverse range of services and operations.
Unlike many investment funds that spread their investments across various sectors, this fund adopts a non-diversified approach, concentrating its investments in the utilities sector. This strategy allows the fund to potentially capitalize on the growth and stability often associated with utilities but also means it may bear a higher risk from the sector's concentration.