FUTY Utilities Set to Keep Momentum Amid High Double‑Digit Earnings Growth

The U.S. utilities sector, tracked by the ETF FUTY (Fidelity MSCI Utilities Index ETF), is experiencing a notably strong run and appears poised to extend its momentum thanks to robust double‑digit earnings growth, according to a recent analysis. Key drivers behind the bullish outlook include higher-than‑expected Q3 earnings, which were fueled by elevated revenues and strong demand across utility companies. The ETF offers broad exposure to major U.S. utilities, with a low expense ratio and a diversified portfolio—highlighted by top holdings such as NEE (NextEra Energy), CEG (Constellation Energy) and SO (The Southern Company). Despite the sector’s traditionally defensive reputation, what’s unusual now is the growth profile: utilities are delivering stronger earnings momentum rather than just serving as a safe‑haven play. Analysts suggest this combination—durable demand, improving fundamentals, and low cost of entry—makes FUTY an appealing pick in the current macro environment. Of course, risks remain. Valuations in parts of the sector are stretched, and utilities are sensitive to interest‑rate moves, regulatory changes and inflationary pressures. But in a market where growth is hard to come by, the fact that utilities may now offer both defensive characteristics and double‑digit earnings expansion has captured investor attention. #utilities #ETF #earningsgrowth #FUTY #SlimScan #GrowthStocks #CANSLIM