The Fidelity MSCI Utilities Index ETF (FUTY) was launched in October 2013 and is a passively managed exchange-traded fund designed to provide broad exposure to the Utilities – Broad segment of the equity market. Passive investment strategies, particularly with Exchange Traded Funds (ETFs), have gained significant traction among both institutional and retail investors due to their inherent advantages, including low cost, increased transparency, flexibility, and tax efficiency. Such funds are well-suited for long-term investment goals. Sector ETFs like FUTY offer investors a streamlined approach to accessing diversified exposure within specific industry sectors, in this case, Utilities – Broad, which is one of 16 broad Zacks sectors within the Zacks Industry classification. Currently ranked as the number one choice within this sector, FUTY’s performance is closely aligned with the MSCI USA IMI Utilities Index, a benchmark reflecting the performance of the utilities sector in the U.S. equity market, before accounting for associated fees and expenses.
Fund Details and Operations
The Fidelity MSCI Utilities Index ETF is sponsored by Fidelity Investments. As of today, July 22, 2025, the fund boasts substantial assets under management, exceeding $1.90 billion, placing it among the largest ETFs specifically designed to mirror the performance of the Utilities – Broad market segment. A key objective of FUTY is to closely track the MSCI USA IMI Utilities Index. The fund’s annual operating expenses are remarkably low at 0.08%, representing one of the most cost-effective options in the sector. In addition, FUTY offers a 12-month trailing dividend yield of 2.69%. The fund’s structure allows for effective diversification, mitigating single-stock risk through a portfolio of approximately 68 holdings.
Holdings and Sector Concentration
While ETFs provide diversified exposure, a detailed examination of a fund’s holdings offers valuable insights. FUTY exhibits a significant concentration within the Utilities sector, accounting for approximately 99.90% of its assets. The most substantial individual holding is Nextera Energy Inc Common Stock Usd.01 (NEE), representing approximately 10.92% of total assets. Southern Company/the Common Stock Usd5.0 (SO) and Constellation Energy Common Stock (CEG) also form significant parts of the portfolio, with holdings around 8.21% and 6.39% respectively. These top 10 holdings account for roughly 53.49% of the total assets under management, emphasizing the fund’s deliberate focus within the Utilities sector.
Performance, Risk Profile, and Alternatives
As of July 22, 2025, the Fidelity MSCI Utilities Index ETF has demonstrated strong performance, achieving a return of roughly 12.50% year-to-date and a 22.41% gain over the last one year. During the 52-week period, the fund’s trading range has been between $45.51 and $54.12. The fund’s beta is 0.58, indicating a medium level of volatility, and the standard deviation of 17.72% for the trailing three-year period. These metrics reflect a moderate risk profile compared to other investment options.
Several comparable ETFs exist in the market. The Vanguard Utilities ETF (VPU) tracks the MSCI US Investable Market Utilities 25/50 Index, with an expense ratio of 0.09%. The Utilities Select Sector SPDR ETF (XLU) tracks the Utilities Select Sector Index, and carries an expense ratio of 0.08%. Both VPU and XLU are notable alternatives for investors seeking exposure to the Utilities sector.
Resources and Further Research
To deepen your understanding and to assist with your investment decisions, resources such as the Zacks ETF Center provide comprehensive information and screening tools. For the latest investment recommendations, Zacks Investment Research offers a ‘7 Best Stocks for the Next 30 Days’ report, available for download. Investing in gold through Thor Metals Group, Priority Gold, and American Hartford Gold may also be of interest. These companies provide options for investing in precious metals.