Fidelity MSCI Utilities Index ETF

FUTY

Market cap $2.36B

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 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.

The VIX ripped to 31.05 in late March before settling back near 18, and anyone who watched their growth holdings whip around during that stretch is probably re-reading the case for boring stocks.

NextEra's $66.8B Dominion deal fuels AI-driven power demand, making utility ETFs like XLU timely plays.

ETFs like XLU offer diversified exposure to utilities as AI, EVs and electrification drive a global surge in power demand.

Looking for broad exposure to the Utilities - Broad segment of the equity market? You should consider the State Street Utilities Select Sector SPDR ETF (XLU), a passively managed exchange traded fund launched on December 16, 1998.

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

Utilities have long been the portfolio's boring backbone: predictable dividends, regulated cash flows, and a tendency to hold up when riskier assets sell off.