UTES: A Backdoor Into The AI Theme
The Virtus Reaves Utilities ETF is an actively managed ETF focused on the Utilities sector. UTES has delivered a stunning 57% return in the past year, driven by AI data center energy demand. However, despite impressive short-term gains, I am cautious about the UTES ETF and the AI investment theme, as I see similarities between AI and the dot-com bubble.
Utility ETFs Scaling New Highs Amid Middle East Crisis
The utility sector is making the most of the widening Middle East crisis and the Fed rate cuts. Here's why.
The Top ETF of the First Nine Months and Its Best Stocks
Reaves Utilities ETF targeting the utility sector is the top-performing ETF of the first nine months. Let's dig into its details below.
UTES: The Right Fund In The Right Sector
Defensive sectors like real estate and utilities are outperforming in times of high volatility and falling yields. The Virtus Reaves Utilities ETF stands out for its active management and strong performance. The focus on only 20 stocks and heavy concentration on the top 2 holdings shows conviction by the management team and is an approach that can deliver outsized returns.
UTES: Active Management Is Working Big Time
The utilities sector is performing well and offers value for investors. Virtus Reaves Utilities ETF (UTES) is a strong option for active management in the sector. UTES has outperformed the passive Utilities Select Sector SPDR ETF (XLU) and has a unique composition of holdings.
