To The Moon

🌟🌟🌟$Fidelity MSCI Utilities Index ETF(FUTY)$ FUTY ETF is a cost effective ETF designed to provide exposure to the Utilities Sector of the US market.  Managed by Fidelity Investments, FUTY tracks the MSCI USA IMI Utilities Index which includes companies from industries such as electric utilities, gas utilities and multi utilities.

FUTY is heavily concentrated in the utilities sector with over 99% of its holdings in utilities related companies.  This makes FUTY a targeted choice for investors seeking exposure to this traditionally stable and income generating sector.

FUTY 's Top holdings include industry leaders like $NextEra(NEE)$  $Southern(SO)$  $Duke(DUK)$ which together represents 25% of this ETF.  Other Top 10 holdings include $Constellation Energy Corp(CEG)$  American Electric Power, Dominion Energy, Exelon Corp, Sempra, Public Service Enterprise Group and Vistra Corp.  The Top 10 holdings weightage is 50.9%.  Total number of holdings is 69.

FUTY pays dividends every 3 months.  The current dividend yield is 3.13%.    The next set of dividends is due on June 2025.  

FUTY has an expense ratio of just 0.08%, making it the lowest among competing ETFs. 

Performance wise, FUTY is up 3.7% on Wednesday trading but down 4.8% in the past week.  However in 2024, FUTY has risen 15%.  Looking back the past 10 years, FUTY has achieved a total return of 140%, highlighting its long term resilience and growth potential. 

Wall Street Analysts are bullish on FUTY, with a Buy rating, Average Target price of USD 56.37, an upside potential of 14% according to Tipranks. 

I like FUTY as it benefits from the sector's defensive characteristics.  Utilities provide essential services like electricity and water, making their revenue stream more consistent even during economic downturns. 

With the AI revolution, the demand for electricity to run and cool data centres is expected to rise dramatically.  Utilities companies within FUTY's portfolio, such as those specialising in electric utilities, are well positioned to benefit from the increased demand.  This makes FUTY an appealing option for investors looking to capitalise on the cross intersection between AI and utilities. 

Apart from lower volatility due to stable cash flow and defensive characteristics, FUTY is also a hedge against inflation as utilities companies often have pricing power regulated by governments, which allows them to adjust prices for inflation and help preserve their revenue streams especially during periods of rising costs. 

The best part of FUTY is the stable dividends which I collect every 3 months.  Whether the markets are up or down, dividend income is a good source of passive income while waiting for capital growth. 

With the current on off Trade Tariffs by the US, FUTY is part of my diversified portfolio to help me  navigate the economic storms ahead. 

@Daily_Discussion  @TigerStars  @Tiger_comments  @CaptainTiger  @TigerClub  @Tiger_SG