Should You Invest in the Fidelity MSCI Utilities Index ETF (FUTY)?

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 10/21/2013.An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.Index DetailsThe fund is sponsored by Fidelity. It has amassed assets over $1.67 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.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.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 2.08%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, 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) accounts for about 11.04% of total assets, followed by Southern Co/the Common Stock Usd5.0 (SO) and Duke Energy Corp Common Stock Usd.001 (DUK).The top 10 holdings account for about 51.56% of total assets under management.Performance and RiskYear-to-date, the Fidelity MSCI Utilities Index ETF has added about 4.31% so far, and is up roughly 27.49% over the last 12 months (as of 03/19/2025). FUTY has traded between $40.50 and $53.38 in this past 52-week period.The ETF has a beta of 0.60 and standard deviation of 18.01% for the trailing three-year period, making it a medium risk choice in the space. With about 70 holdings, it effectively diversifies company-specific risk.AlternativesFidelity MSCI Utilities Index ETF holds a Zacks ETF Rank of 1 (Strong 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) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $6.72 billion in assets, Utilities Select Sector SPDR ETF has $17.69 billion. VPU has an expense ratio of 0.09% and XLU charges 0.08%.Bottom LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity MSCI Utilities Index ETF (FUTY): ETF Research Reports NextEra Energy, Inc. (NEE): Free Stock Analysis Report Southern Company (The) (SO): Free Stock Analysis Report Duke Energy Corporation (DUK): Free Stock Analysis Report Utilities Select Sector SPDR ETF (XLU): ETF Research Reports Vanguard Utilities ETF (VPU): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks