The Fidelity MSCI Utilities Index ETF (FUTY) offers low-cost exposure to the utilities sector, making it appealing for long-term investors.
It’s become a popular choice for both retail and institutional investors. Why? Well, these passively managed ETFs are known for their low costs and transparency. Plus, they’re flexible and tax-efficient, making them great for long-term investing.
FUTY focuses on the utilities sector, which is one of the 16 broad sectors in the Zacks Industry classification. Right now, it’s ranked 7th, putting it in the top 44%.
The fund is backed by Fidelity and has over $1.60 billion in assets. It aims to match the performance of the MSCI USA IMI Utilities Index, which tracks the utilities sector in the U.S.
When it comes to costs, FUTY stands out with an expense ratio of just 0.08%. That’s pretty low, especially compared to other options. It also offers a 12-month trailing dividend yield of 2.97%.
Even though ETFs are generally diversified, it’s still good to know what’s inside. FUTY has about 99.80% of its portfolio in the utilities sector. The biggest holding is NextEra Energy, making up about 11.61% of the total assets, followed by Southern Company and Duke Energy. The top 10 holdings account for around 52.90% of the fund.
In terms of performance, FUTY has seen a slight dip of about -0.35% this year, but it was up about 20.70% over the last year. The fund has traded between $38.61 and $53.38 in the past 52 weeks. With a beta of 0.63, it’s considered a medium-risk option, effectively spreading out company-specific risks with around 72 holdings.
FUTY has a Zacks ETF Rank of 1, which is a strong buy rating. This makes it a solid choice for anyone looking to invest in the utilities sector. There are other ETFs out there too, like the Vanguard Utilities ETF and the Utilities Select Sector SPDR ETF, which you might want to consider.
In short, if you’re interested in utilities, FUTY could be a great addition to your portfolio. For more info on this and other ETFs, check out Zacks ETF Center.
