Fidelity MSCI Utilities Index ETFFUTY

Fidelity’s MSCI USA IMI Utilities Index ETF (FUTY) is the latest wrapper to turn regulated utilities into a listed product, a financial sleight-of-hand that repackages slow-growth dividends as an “ESG-friendly” transition trade. The fund’s mandate is straightforward: hold the constituents of the MSCI USA IMI Utilities Index and charge 0.084% per year for the privilege. The index itself is a capitalisation-weighted collection of electric utilities, gas distributors, water companies, and a handful of independent power producers, giving investors exposure to the infrastructure that keeps the lights on, the taps running, and the boilers lit. Whether that exposure qualifies as “transition” is left to the marketing team; the index methodology makes no mention of carbon targets or renewable build-outs.

The ETF does not own power plants or transmission lines; it owns the listed equity of the firms that own the assets. The top ten holdings-NextEra Energy, Duke Energy, Southern Company, and peers-are household names in regulated markets, where growth is capped by rate cases and dividends are treated as a public service. The fund’s 0.084% expense ratio is small in absolute terms, yet large enough that over a decade it can quietly consume more than a year’s dividend from a modest position. The issuer’s prospectus notes that the fund may also hold ADRs and foreign-listed utilities for “diversification,” a polite way of admitting that the core basket is already concentrated in a handful of domestic giants.

The SEC filing confirms FUTY is organised as a Delaware statutory trust, a common wrapper for US-listed ETFs that keeps the tax plumbing simple and the expense line visible. The fund launched in 2024 and trades on Nasdaq under ticker FUTY, where turnover data is updated in real time. The Nasdaq listing shows intraday volume that ebbs and flows with broader utilities sentiment, but the underlying stocks are mostly large-caps with muted daily moves, meaning the ETF’s price action is dominated by flows into and out of the wrapper rather than by fundamental re-rating of the holdings. The exchange does not provide the fund’s holdings composition in the listing feed; for that, the source requires readers to consult the issuer’s website or the index provider’s methodology page, which are updated monthly.

If you want to see the basket in one place, the MSCI methodology page for the USA IMI Utilities Index shows the index rules, rebalancing schedule, and the full list of constituents. The index is float-adjusted and capped at 25% for any single issuer, a design choice that ensures concentration risk sits with the largest regulated monopolies. The MSCI methodology is silent on carbon intensity, capex plans, or stranded-asset risk, leaving investors to decide whether “utilities” equals “transition” by inspection rather than by mandate.

The FINRA Fund Analyzer reports the fund’s expense ratio as 0.084% and confirms the wrapper is an open-end fund share class. FINRA does not opine on the quality of the holdings, the index methodology, or the suitability of the product for any investor. The Analyzer also shows that the fund’s prospectus fee table lists additional administrative and operating expenses that push the total annual cost to 0.12% when all layers are included. That extra sliver is small enough to escape most retail brochures, yet large enough to buy a round of coffees for the fund’s compliance committee. The Analyzer does not provide the fund’s holdings, turnover, or performance history; those details sit in the issuer’s periodic reports, which are filed with the SEC and updated quarterly.