iShares US Utilities ETF

IDU

Market cap $1.79B

The iShares U.S. Utilities ETF (IDU) was launched on June 12, 2000, and is a passively managed exchange traded fund designed to offer broad exposure to the Utilities - Broad segment of the equity market.

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.

iShares U.S. Utilities ETF offers diversified exposure to U.S. utilities, including electricity, gas, water, and waste management companies. IDU has been a reliable, defensive investment, particularly during periods of concern over broader equity valuations. The ETF delivered strong results in early 2025, validating a previous 'buy' recommendation despite the S&P 500's robust performance.

As AI-fueled gains spark bubble warnings, investors are eyeing defensive ETFs in consumer staples, utilities and healthcare for safety.

The artificial intelligence sector is showing critical warning signs that suggest a significant correction may be approaching. Recent market analysis reveals that AI stocks, particularly the “Magnificent Seven,” have been making lower highs since December 2024, diverging from broader market performance – a pattern that historically precedes major corrections.

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

Launched on June 12, 2000, the iShares U.S. Utilities ETF (IDU) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Broad segment of the equity market.

IDU hits a 52-week high, fueled by a rare seven-month utility rally and growing investor interest in sector momentum.

This article provides a top-down analysis of the utilities sector based on valuation, quality, and momentum metrics. Water utilities are undervalued by 17% versus 11-year averages, while electricity/multi-utilities are overvalued by 13%. IDU and XLU ETFs have nearly identical long-term returns and risk, but XLU's lower fees and higher liquidity make it preferable for most investors.

Looking for broad exposure to the Utilities - Broad segment of the equity market? You should consider the iShares U.S. Utilities ETF (IDU), a passively managed exchange traded fund launched on 06/12/2000.