UTES stands out as an actively managed utility ETF, outperforming peers by capitalizing on AI-driven electricity demand and focusing on independent power producers. The concentrated portfolio, led by skilled Reaves managers, has evolved into a growth-oriented utility ETF, but current valuations appear stretched after a recent rally. With a modest 1.6% yield, UTES isn't ideal for income investors; the Reaves Utility Income Fund (UTG) offers a 6.75% yield and similar management.
Virtus Reaves Utilities ETF is a buy after its recent 6% pullback. UTES is actively managed, outperforming other utility ETFs, with a 45.31% price appreciation in 2024 and a five-star Morningstar rating. The fund's top holdings are less concentrated than before, with new investments like CenterPoint Energy showing strong growth potential and favorable regulatory support.
AI-driven energy demands have boosted utility stocks, but DeepSeek's efficient AI approach questions future growth projections, impacting the Virtus Reaves Utilities ETF (UTES). UTES saw significant gains in 2024, led by top holdings like Constellation Energy and Vistra, but current high valuations may not be sustainable if projections change. Environmental and regulatory challenges complicate utility expansions, making it difficult for UTES to find alternative growth opportunities within its top holdings.
![]() UTES In 1 month Estimated | Other | $0.24 Per Share |
![]() UTES 1 month ago Paid | Other | $0.24 Per Share |
![]() UTES 4 months ago Paid | Quarterly | $0.26 Per Share |
![]() UTES 7 months ago Paid | Quarterly | $0.27 Per Share |
![]() UTES 10 months ago Paid | Quarterly | $0.17 Per Share |
![]() UTES 20 Jun 2024 Paid | Quarterly | $0.26 Per Share |
![]() UTES In 1 month Estimated | Other | $0.24 Per Share |
![]() UTES 1 month ago Paid | Other | $0.24 Per Share |
![]() UTES 4 months ago Paid | Quarterly | $0.26 Per Share |
![]() UTES 7 months ago Paid | Quarterly | $0.27 Per Share |
![]() UTES 10 months ago Paid | Quarterly | $0.17 Per Share |
![]() UTES 20 Jun 2024 Paid | Quarterly | $0.26 Per Share |
ARCA Exchange | US Country |
The fund focuses on investing primarily in the equity securities of companies operating within the Utility Sector. It earmarks at least 80% of its net assets, along with any borrowed funds intended for investment purposes, to these utility companies. The fund's investment strategy is centered around entities involved in the generation, distribution, or provision of electricity, gas, or water. These companies are characterized by their substantial engagement, either through customer base or asset dedication, in the utilities sphere. It seeks opportunities in businesses where at least half of the assets or client base is devoted to utility services or at least half of the revenue, gross income, or profits stem from utility operations. This fund is non-diversified, implying a concentrated investment approach within the utility sector rather than spreading investments across various sectors.
This product consists of investments in shares or stock options of companies engaged in the utility sector. The focus is on entities that either supply utility services or produce equipment essential for the provision, generation, and distribution of electricity, gas, and water. The fund targets companies showing a substantial portion (at least 50%) of their operations or financials rooted in utilities, aligning with the fund’s core investment thesis.
The fund has the capability to borrow additional funds with the intent to invest in its focused sector. This strategy aims to leverage potential opportunities within the utility sector by increasing the capital available for investment. However, it's worth noting that borrowing for investment purposes also introduces a higher level of risk due to the potential for increased losses that may exceed the borrowed amount.