FUTY Delivers 64% in Five Years While Charging Investors Next to Nothing

1 week ago 4

John Seetoo

Fri, March 27, 2026 astatine 10:49 AM CDT 5 min read

Fidelity MSCI Utilities Index ETF (FUTY) charges 0.084% successful fees and holds NextEra Energy (NEE) astatine 12.33%, Southern Co (SO), Duke Energy (DUK), Constellation Energy (CEG) which acquired Calpine successful January 2026 to go the nation’s largest backstage powerfulness shaper astatine 55 GW, American Electric Power (AEP), and Vistra Corp (VST) with 2026 guided EBITDA of $6.8B-$7.6B. FUTY returned 20% implicit the past twelvemonth and 64% implicit 5 years, though it carries merchant powerfulness volatility hazard chiseled from accepted regulated utilities.
AI-driven request for carbon-free atomic energy has transformed FUTY from a axenic antiaircraft income money into a conveyance with meaningful vulnerability to the information halfway powerfulness theme, arsenic Constellation Energy and Vistra person signed semipermanent powerfulness acquisition agreements with Microsoft, Meta, and Amazon Web Services.
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Utilities person agelong been the portfolio's boring backbone: predictable dividends, regulated currency flows, and a inclination to clasp up erstwhile riskier assets merchantability off. Fidelity MSCI Utilities Index ETF (NYSEARCA:FUTY) packages that thought into a azygous money astatine near-zero cost, but what investors really ain is much nuanced than the classical antiaircraft inferior story.

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FUTY tracks the MSCI USA IMI Utilities 25/50 Index, a market-cap-weighted benchmark covering the afloat U.S. utilities sector. The money charges an disbursal ratio of 0.084%, among the lowest for immoderate assemblage ETF. With $2.48 cardinal successful nett assets and a 2013 inception date, it has a agelong capable way grounds to measure done aggregate complaint cycles.

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The instrumentality motor is straightforward: regulated inferior businesses gain predictable returns connected their complaint bases, walk costs done to customers nether state-approved agreements, and administer a ample stock of net arsenic dividends. The dividend output sits adjacent 2.5%, which functions arsenic the income level portion superior appreciation depends connected the complaint situation and net growth.

The scale uses a 25/50 attraction cap, meaning nary azygous issuer tin transcend 25% and companies supra 5% collectively cannot transcend 50%. In practice, NextEra Energy represents 12.33% of the fund, much than treble the second-largest holding. The apical 5 names — NextEra Energy (NYSE:NEE), Southern Co (NYSE:SO), Duke Energy (NYSE:DUK), Constellation Energy (NASDAQ:CEG), and American Electric Power (NASDAQ:AEP) — unneurotic relationship for astir 35% of the portfolio crossed 65 full positions.

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