⚡Utility ETFs: Your Powerhouse Portfolio Defender in 2025

In partnership with

Happy weekend, everyone! In 2025, as artificial intelligence stocks capture attention and interest rates soar, you might wonder why anyone would consider utility stocks. In this weekend's cozy reading session of Quicklist, we will explore that topic!

Savvy Investors Know Where to Get Their News—Do You?

Here’s the truth: Most financial media focuses on clicks, not clarity. The Daily Upside, created by Wall Street insiders, delivers valuable insights—free. Join 1M+ readers and subscribe today!

Join 1M+ readers and subscribe today!

Why Utility ETFs?💡

While tech stocks fluctuate with AI developments and bonds start to yield more, utility companies provide essential services that warrant attention. Here’s why:

• Utilities supply vital services like electricity, water, and gas, ensuring stability in any economic climate.

• They often offer higher dividend yields, making them appealing to income-focused investors.

• Regulated utilities can typically pass increased borrowing costs from higher interest rates onto consumers, protecting their profit margins.

Utility ETFs offer lower volatility than the broader market, providing a defensive shield. Their above-average dividend yields attract income-focused investors. Additionally, strict industry regulations ensure predictable earnings for utility companies, offering protection during market downturns, even if it limits growth potential.

✨Top Utility ETFs

Let's explore some of the most popular utility ETFs available in the market:

1. Utilities Select Sector SPDR Fund (XLU)

Expense Ratio: 0.09%

Provider: SPDR

Past 3 Years Annualised Performance: 5.13%

The XLU ETF, the first and still the largest of its kind, tracks major U.S. utility companies, focusing on electric power and natural gas industries.

2. Direxion Daily Utilities Bull 3X Shares (UTSL)

Expense Ratio: 1.12%

Provider: Direxion

Past 3 Years Annualised Performance: -5.13%

UTSL offers leveraged exposure to utilities. This ETF aims to achieve 3x the daily performance of the utilities sector. ETF UNO would like to remind you that leverage cuts both ways!

3. Vanguard Utilities ETF (VPU)

Expense Ratio: 0.10%

Provider: Vanguard

Past 3 Years Annualised Performance: 4.80%

True to Vanguard's reputation, VPU provides extensive utility exposure, offering access to both large and mid-cap utility stocks.

4. First Trust North American Energy Infrastructure Fund (EMLP)

Expense Ratio: 0.96%

Provider: First Trust

Past 3 Years Annualised Performance: 16.78%

EMLP takes a unique approach by focusing on energy infrastructure. This First Trust ETF has delivered a solid return over the past years, benefiting from its active management.

5. Fidelity MSCI Utilities Index ETF (FUTY)

Expense Ratio: 0.084%

Provider: Fidelity

Past 3 Years Annualised Performance: 4.86%

FUTY tracks the performance of the MSCI USA IMI Utilities Index at a low cost and provides broad market exposure.

Keeping the Lights On✨

As we conclude this energizing exploration of utility ETFs, remember that these investments are about building a well-rounded portfolio that can weather various market conditions. Utility ETFs offer stability and income in an uncertain world. Whether you're just starting your ETF journey or looking to diversify your existing portfolio, utility ETFs deserve consideration as a core holding.

Want to stay connected with more insights like these? Through our ETF UNO newsletter, you'll discover new investment opportunities, learn from fellow investors, and build your ETF knowledge. Happy investing!

DISCLAIMER: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider consulting with a financial advisor before making investment decisions.