Fidelity MSCI Utilities Index ETF

FUTY

Market cap $2.2B

A third Fed rate cut this year is boosting utilities, making diversified Utility ETFs like XLU an attractive way to tap lower borrowing costs and steady dividends.

Utility ETFs like XLU gain momentum as AI-driven data center power demand and falling rate expectations boost the sector's appeal.

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.