(FUTY) Fidelity MSCI Utilities - Ratings and Ratios

The Fidelity® MSCI Utilities Index ETF (FUTY) is designed to track the performance of the utilities sector within the U.S. equity market. It achieves this by investing at least 80% of its assets in securities that are part of its underlying index, the MSCI USA IMI Utilities 25/50 Index. This index provides a comprehensive representation of the utilities sector, encompassing companies involved in electricity, gas, water, and renewable energy. The fund may hold a substantial portion of the securities in this index, though it is not required to replicate it entirely.

As a non-diversified fund, FUTY can concentrate its investments in a smaller number of securities, which may heighten sector-specific risks but also allows for a more focused exposure to the utilities sector. This sector is often characterized by its defensive nature, offering relatively stable performance during economic downturns, and typically provides steady income through dividends, making it appealing for income-focused investors.

With an AUM of $1.656 billion, FUTY is a sizable ETF offering liquidity and accessibility. Listed on the NYSE ARCA, it provides investors with a cost-effective way to gain exposure to the utilities sector through a passively managed fund, which usually entails lower expense ratios compared to actively managed funds. This structure makes it an attractive option for those seeking targeted sector exposure within a diversified portfolio.