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Should You Invest in the Fidelity MSCI Utilities Index ETF (FUTY)?
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The Fidelity MSCI Utilities Index ETF (FUTY - Free Report) was launched on 10/21/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Utilities - Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $1.90 billion, making it one of the larger ETFs attempting to match the performance of the Utilities - Broad segment of the equity market. FUTY seeks to match the performance of the MSCI USA IMI Utilities Index before fees and expenses.
The MSCI USA IMI Utilities Index represents the performance of the utilities sector in the U.S. equity market.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.
It has a 12-month trailing dividend yield of 2.69%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Utilities sector--about 99.90% of the portfolio.
Looking at individual holdings, Nextera Energy Inc Common Stock Usd.01 (NEE - Free Report) accounts for about 10.92% of total assets, followed by Southern Co/the Common Stock Usd5.0 (SO - Free Report) and Constellation Energy Common Stock (CEG - Free Report) .
The top 10 holdings account for about 53.49% of total assets under management.
Performance and Risk
So far this year, FUTY return is roughly 12.50%, and is up about 22.41% in the last one year (as of 07/22/2025). During this past 52-week period, the fund has traded between $45.51 and $54.12.
The ETF has a beta of 0.58 and standard deviation of 17.72% for the trailing three-year period, making it a medium risk choice in the space. With about 68 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Utilities Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FUTY is an excellent option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Utilities ETF (VPU - Free Report) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (XLU - Free Report) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $7.22 billion in assets, Utilities Select Sector SPDR ETF has $20.31 billion. VPU has an expense ratio of 0.09% and XLU charges 0.08%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Fidelity MSCI Utilities Index ETF (FUTY)?
The Fidelity MSCI Utilities Index ETF (FUTY - Free Report) was launched on 10/21/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Utilities - Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $1.90 billion, making it one of the larger ETFs attempting to match the performance of the Utilities - Broad segment of the equity market. FUTY seeks to match the performance of the MSCI USA IMI Utilities Index before fees and expenses.
The MSCI USA IMI Utilities Index represents the performance of the utilities sector in the U.S. equity market.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.
It has a 12-month trailing dividend yield of 2.69%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Utilities sector--about 99.90% of the portfolio.
Looking at individual holdings, Nextera Energy Inc Common Stock Usd.01 (NEE - Free Report) accounts for about 10.92% of total assets, followed by Southern Co/the Common Stock Usd5.0 (SO - Free Report) and Constellation Energy Common Stock (CEG - Free Report) .
The top 10 holdings account for about 53.49% of total assets under management.
Performance and Risk
So far this year, FUTY return is roughly 12.50%, and is up about 22.41% in the last one year (as of 07/22/2025). During this past 52-week period, the fund has traded between $45.51 and $54.12.
The ETF has a beta of 0.58 and standard deviation of 17.72% for the trailing three-year period, making it a medium risk choice in the space. With about 68 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Utilities Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FUTY is an excellent option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Utilities ETF (VPU - Free Report) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (XLU - Free Report) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $7.22 billion in assets, Utilities Select Sector SPDR ETF has $20.31 billion. VPU has an expense ratio of 0.09% and XLU charges 0.08%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.