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 October 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.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 4, placing it in top 31%.Index DetailsThe fund is sponsored by Fidelity. It has amassed assets over $1.98 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.CostsWhen 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 3.34%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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 100% of the portfolio.Looking at individual holdings, Nextera Energy Inc Common Stock Usd.01 (NEE) accounts for about 13.57% of total assets, followed by Duke Energy Corp Common Stock Usd.001 (DUK) and Southern Co/the Common Stock Usd5.0 (SO).The top 10 holdings account for about 52.54% of total assets under management.Performance and RiskYear-to-date, the Fidelity MSCI Utilities Index ETF has gained about 13.81% so far, and it's up approximately 11.89% over the last 12 months (as of 09/22/2025). FUTY has traded between $47.29 and $56.26 in this past 52-week period.The ETF has a beta of 0.60 and standard deviation of 17.36% 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 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) 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 $7.50 billion in assets, Utilities Select Sector SPDR ETF has $20.90 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks