To The Moon

🌟🌟🌟The Utilities Sector have been doing well lately and in fact $Fidelity MSCI Utilities Index ETF(FUTY)$ is up 5.6% in the past month.  In contrast $The Magnificent Seven ETF(MAGS)$ which represent the Magnificent 7 stocks have lagged behind at 3.5% in the past month.

Utilities stocks have been benefiting from data that shows a growing demand for their services.  This is due to the fast growing market for Electric Vehicles and Data Centres required for machine learning in AI.   Analysts expect that the utilities companies would need to invest heavily in the electric grid to keep up.

FUTY seeks to provide investment returns on the performance of the US utilities sector tracking the MSCI USA IMI Utilities Index.

The Top 10 holdings include NextEra Energy, Southern Co, Duke Energy Corp, Constellation Energy Corp, American Electric Power, Sempra, Dominion Energy, Public Service Enterprise Group, Exelon Corp and PG&E Corp.

The Top 10 holdings  weightage is 54%.  Total number of holdings is 67.  The expense ratio is  0.08% which is the lowest among competing Utilities ETFs.  Dividends are paid every 3 months.  The current dividend yield is 3%.

$NextEra(NEE)$ is the world's largest generator of renewable energy from wind and solar.  It also owns and operates generating plants powered by natural gas, nuclear energy and oil.  NextEra Energy's mission is to accelerate industry towards a zero carbon future.

Performance wise, NextEra Energy is 29% year todate and in 2023, NextEra has risen 18.5%.  NextEra Energy is also a Dividend Aristocrat since 2021 and has continued to increase its dividends each year.

$Southern(SO)$ is one of the largest producers of electricity in the US and the largest wholesale provider in the Southeast region of the US. It serves 9 million customers with vertically integrated electric utilities in Georgia, Alabama and Mississippi. 

Southern Company is a Dividend Aristocrat having increased its dividends annually since 1986.  Its share price has risen 21.5% year todate and in 2023, Southern Company's share price has jumped by 27%.

$Duke(DUK)$ is a US electric power and natural gas company serving 7.2 million customers in the Mid Western part of the US. Duke Energy also owns wind and nuclear power plants. 

Duke Energy's share price is up 14.8% year todate and in 2023, it has risen by 24.8%.  Duke Energy has paid a dividend every quarter for 98 years and has grown its dividends over time. 

Constellation Energy is US's largest producer of carbon free energy and provides sustainable solutions to homes, businesses and public sector customers across the US.  It is accelerating the transition to a carbon free future. 

Constellation Energy's share price has been on a tear!  It is up 69% year todate and 82% in 2023. 

These are some of the best US utilities stocks that make up FUTY ETF. 

Performance wise FUTY is up 1.1% for the week and it has risen 17% year todate.  In 2023, FUTY is up 19%.  It has recently reached its all time high at USD 48.78.

Wall Street Analysts are bullish on FUTY with a Buy rating, Average Target price of USD 50.02, an upside potential of 3%.

The Utilities companies may seem like a boring business but they provide essential services that are resilient in both boom times and bust times.  Because of that FUTY ETF pays nice juicy stable dividends which is a great source of passive income. 

I have started to invest in FUTY just 2 months ago and since  then, I am happy with its stable performance.  Boring is good especially when the markets are volatile.  

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