Fidelity MSCI Utilities Index ETF

FUTY

Market cap $2.22B

Launched on October 21, 2013, the Fidelity MSCI Utilities Index ETF (FUTY) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Broad segment of the equity market.

Next year may not be a repeat of the past three years, and your portfolio can benefit tremendously from a shake-up.

Fidelity MSCI Utilities Index ETF is upgraded to strong buy, capitalizing on robust utilities sector earnings and long-term growth prospects. FUTY benefits from top holdings, like NEE, CEG, SO, and DUK, all showing strong earnings, ambitious investment plans, and positive outlooks. The fund outperforms the S&P 500 YTD, offers a 2.5% dividend yield, trades at attractive valuations, and maintains a low 0.08% expense ratio.

Utility ETFs, like XLU and VPU, are set to shine as the Fed's latest rate cut and AI-driven power demand create a powerful tailwind for the sector.

AI's energy-hungry data centers are fueling a surge in utility ETFs, with funds like XLU, VPU, IDU, and FUTY outpacing sector growth.

If you're interested in broad exposure to the Utilities - Broad segment of the equity market, look no further than the Fidelity MSCI Utilities Index ETF (FUTY), a passively managed exchange traded fund launched on October 21, 2013.

2025 has, for many investors, been the tale of two markets. The start of the year saw new policy decisions and the first brush with tariffs.

This article provides a top-down analysis of the utilities sector based on valuation, quality, and momentum metrics. Gas and water utilities are slightly undervalued while electricity/multi-utilities are overvalued. FUTY ETF is an equivalent to XLU for long-term investors, but lower liquidity makes it less compelling for trading strategies.

Midyear can be an ideal opportunity for investors to re-evaluate their portfolios and consider rebalancing to align with their ideal asset allocation. As the midpoint of 2025 passes, the U.S. stock market has delivered a mixed bag of performance across sectors, driven largely by continued enthusiasm for artificial intelligence (AI) and fluctuating economic conditions.

Thanks to AI, cloud computing, and renewable energy reshaping the global economy, one under-the-radar sector surging to the forefront is utilities. Long considered a sleepier, more defensive, “old economy” play, utilities stocks and ETFs are quickly becoming the backbone of the digital and green revolution.