Virtus Reaves Utilities ETF

UTES

Capitalización de mercado USD 1212 M

The Virtus Reaves Utilities ETF (UTES) is initiated with a buy rating, capitalizing on utilities' transformation from defensive to growth amid AI-driven demand. UTES targets utilities poised for outsized earnings and revenue growth, especially those with nuclear and clean energy exposure serving data centers and tech giants. Valuation reset, with sector forward P/E at 16x versus a 5-year average of 18x, offers an attractive entry point for long-term investors.

Brazilian equities, tanker shipping, utilities, cybersecurity and cloud computing ETFs led last week's winners. Here's what fueled their gains.

Utilities stocks lagged the major equity indices in the quarter, due primarily to a strong rebound in the technology sector and improving investor sentiment. The Virtus Reaves Utilities ETF increased 2.71% in the quarter at Net Asset Value. Talen Energy and Vistra Corp led performance in the quarter.

I prioritize dividend growth investing, building a core portfolio of select ETFs and high-quality individual stocks for stability and passive income. My approach favors continuity and flexibility, avoiding the risks of abrupt transitions from growth to dividend stocks near retirement. The portfolio centers on seven dividend growth ETFs, balancing moderate yield with robust growth potential and sector diversification.

Water utilities are undervalued, while electricity and multi-utilities are moderately overvalued. Virtus Reaves Utilities ETF (UTES) has delivered higher long-term returns than XLU. However, its weaker fundamentals, recent underperformance, and concentration are notable risks.

The Virtus Reaves Utilities ETF (NYSEARCA:UTES) is one of the only actively managed funds in the utilities category, and its 0.49% expense ratio sits near the top end of what utility investors will pay.

US utility capital expenditure is tracking toward approximately 1.3 trillion dollars through 2030, according to an April 2026 forecast from S&P Global Market Intelligence. A tripling of data center power demand within five years requires transmission, generation, and distribution investment on a timeline that utilities are only now beginning to fully underwrite into their capital plans.

Utility stocks returned to focus in 2026 as artificial intelligence data center demand strained the power grid.

Electricity is becoming a stronger economic growth engine, powering AI data centres, EVs, heat pumps and industrial decarbonisation. But grids aren't keeping up.

The Virtus Reaves Utilities ETF is an actively managed fund with strong exposure to regulated utilities and independent power producers. UTES is positioned to benefit from surging electricity demand driven by AI data center growth, supporting a strong long-term growth outlook. Despite a modest 1.5% yield, UTES offers supercharged dividend growth potential and has outperformed passive utilities ETFs in recent years.