S&P Utilities Index ETF Investment Guide

The S&P Utilities Index ETF is a popular investment option for those looking to diversify their portfolio with a focus on the utilities sector. It tracks the S&P 500 Utilities Index.

The S&P Utilities Index is a benchmark for the utilities sector, comprising 25 of the largest US utilities companies. These companies are involved in the production and distribution of electricity, gas, and water.

Investing in the S&P Utilities Index ETF can provide a relatively stable source of income, as utilities companies are often less volatile than other sectors. This is due to the essential nature of their services, which are typically less affected by economic downturns.

The Fidelity MSCI Utilities Index ETF (FUTY) is a great investment option for those looking to track the performance of large-sized U.S. utilities companies.

This ETF invests at least 80% of its assets in companies that operate within its underlying index, the MSCI USA IMI Utilities 25/50 Index.

FUTY has a total of 66 holdings, with its major holdings in NextEra Energy Inc, Duke Energy Corp, and Southern Co.

The fund's expense ratio is a low 0.08%, making it an attractive option for investors looking to minimize costs.

Investors can expect an annual dividend payout of $1.24 with a fair yield of 2.68% from FUTY.

The Fidelity MSCI Index ETF is a great option for those looking to invest in the utilities sector. It seeks to track the performance of large sized U.S. utilities companies in the S&P 500 Index.

This ETF has a fund inception date of July 7, 2015, and its index inception date is August 27, 2018. As of November 30, 2024, the fund's net return is 33.19% for the year to date.

Here are the fund's historical returns:

The fund's gross return, which includes the impact of fees, is 33.37% for the year to date. The difference between the fund's gross and net returns is 0.52% as of November 30, 2024.

The fund's expense ratio is not explicitly stated in the article section, but we can compare it to other funds in the utilities sector. For example, the Utilities Select Sector SPDR Fund has an expense ratio of 0.10%, while the First Trust Utilities AlphaDEX Fund has an expense ratio of 0.64%.

The Invesco Equal Weight ETF is a great option for investors looking to diversify their portfolios. It tracks the S&P 500 Equal Weight Index, which means it invests in a wide range of utility company stocks.

This ETF is domiciled in the United States and is managed by Invesco Capital Management LLC. It's a well-established fund with a large asset base.

The Invesco Equal Weight ETF has an expense ratio of 0.20%, which is relatively low compared to other funds. It's also trading at $145 as of January, making it a liquid investment option.

This ETF yields dividends, with an annual payout of $2.57.

The S&P Utilities Index ETF is a popular investment option for those looking to tap into the utilities sector. The fund has a inception date of July 7, 2015, and its index inception date is August 27, 2018.

Its performance has been impressive, with a 1-year return of 35.67% as of November 30, 2024. This is closely matched by the S&P Utilities Select Sector Daily Capped 25/20 Index, which also returned 35.31% over the same period.

The fund's 3-year return is 10.81%, while the index's 3-year return is 10.45%. This suggests that the fund has performed slightly better than the index over the long term.

Here's a comparison of the fund's performance with the index over different time periods:

The fund's gross return, which includes the impact of fees, is 35.87% over the past year. The index's gross return is 35.31% over the same period. This means that the fund's fees have added 0.56% to the return over the past year.

The fund's performance has been consistent over the years, with a 2024 year-to-date return of 33.19%. This is slightly higher than the index's 2024 year-to-date return of 32.86%.

Utility ETFs operate with a mind of their own, unaffected by market swings and volatility, due to their essential services.

Their companies are always in demand, making the utility industry an objectively great place to put your money.

Low management fees and experienced managers are key to successful utility ETFs.

Investors can use utility ETFs to optimize their portfolios for diversification, regulatory stability, and tax efficiency.

These ETFs provide a greater degree of protection from volatility compared to other equity investments.

Utility ETFs can also help reduce capital gains tax liability due to their structure.

When considering an investment, it's essential to understand the costs involved. Ongoing Charge (OCF/TER) is a significant factor, and in this case, it's 0.15%.

The management fee is not applicable in this scenario, as it's listed as "n/a".

Indicative spread is another cost to be aware of, coming in at 0.1%.

It's worth noting that these costs may not be the only ones you'll encounter, so be sure to read the Key Investor Information Document, Factsheet, Prospectus, and any other relevant documentation before investing.

Here's a breakdown of the costs mentioned:

Utility ETFs can be a great place to put your money because the utility industry is always in demand, regardless of market swings.

Their services, like running water and electricity, are essential to people's daily lives.

The utility sector tends to operate independently of market volatility, making it a relatively stable investment option.

This stability is due to the fact that people will always need these services, no matter the market conditions.

Utility ETFs offer a low-risk investment opportunity, especially those with low management fees and experienced managers.

They're also an attractive option for investors looking to optimize their portfolios for diversification, regulatory stability, and tax efficiency.

Utility ETFs are not subject to the same level of volatility as other equity investments, providing investors with a greater degree of protection.

Investors can use utility ETFs to reduce their capital gains tax liability due to their structure.

All forms of investing involve risk, so it's essential to thoroughly research any ETF to avoid incurring significant losses.