(FUTY) Fidelity MSCI Utilities - Ratings and Ratios

The Fidelity® MSCI Utilities Index ETF (NYSE ARCA:FUTY) is designed to track the performance of the utilities sector in the U.S. equity market by investing at least 80% of its assets in securities included in its underlying index, the MSCI USA IMI Utilities 25/50 Index. This index represents a diversified portfolio of U.S. utilities companies, weighted by market capitalization, with a 25/50 capping structure to prevent excessive concentration in any single issuer. The fund may or may not hold all of the securities in the index and is classified as a non-diversified investment vehicle, which allows it to concentrate its holdings in a smaller number of securities compared to diversified funds. This approach can result in higher volatility but may also provide more targeted exposure to the utilities sector.

From a technical perspective, FUTY is currently trading at $50.94, with its price above both the 20-day (49.87) and 50-day (50.19) simple moving averages but below the 200-day (49.38) moving average. This indicates short-term momentum but longer-term weakness. The average true range (ATR) of 1.08 suggests moderate volatility, while the average 20-day volume of 193,150 shares indicates consistent trading activity. Over the next three months, if the price remains above the 50-day SMA and breaks above the 200-day SMA, it could signal a bullish trend. Conversely, a drop below the 50-day SMA could indicate a bearish reversal. The ATR suggests that price fluctuations are likely to remain within a moderate range.

From a fundamental perspective, FUTYs assets under management (AUM) of $1.7 billion reflect strong investor interest in utilities as a defensive sector. Utilities typically perform well in low-interest-rate environments and during periods of economic uncertainty, as they provide essential services with relatively stable demand. However, the sectors performance is also sensitive to regulatory changes and interest rate fluctuations. The funds concentration in the top holdings, which may account for a significant portion of its portfolio, could amplify risks if those companies underperform. Overall, FUTY is positioned as a straightforward, low-cost way to gain exposure to the U.S. utilities sector, with its performance closely tied to the broader economic and regulatory environment.