What are broad utilities ETFs?
Utilities ETFs own companies that generate and deliver electricity, natural gas and water. Many of these businesses are regulated, which means state officials approve the rates they charge customers. Most of the 13 US-listed funds share the same core of large utility companies. Constellation Energy appears in 10 of the 13 funds. NextEra Energy, Southern Co, Duke Energy, American Electric Power, Sempra, Entergy, Vistra, Xcel Energy and Exelon each appear in 9. NextEra is often the single largest holding, typically around 10% of a fund.
The three biggest funds track indexes and look alike. State Street's XLU follows the Utilities Select Sector Index with 31 stocks, Vanguard's VPU holds 68, and Fidelity's FUTY tracks the MSCI USA IMI Utilities 25/50 Index with 62. iShares' IDU is similar but also holds Waste Management. UTES, from Virtus, names no index and holds just 18 stocks, led by Constellation, Talen Energy and Vistra. RSPU gives its holdings roughly equal weights, PUI follows a Dorsey Wright momentum index, JXI adds foreign companies such as Iberdrola and Enel, and PSCU mixes small utilities with communication services firms like Match Group.
Three funds are leveraged or inverse and reset every day. UTSL aims for 3 times its index's daily move, UPW for 2 times and SDP for minus 2 times, so SDP rises on days when utilities fall. Expense ratios, the yearly fee taken from fund assets, run from 0.08% for XLU to 0.97% for UTSL, with a median of 0.40%. FUTY (0.084%) and VPU (0.09%) cost almost as little as XLU.
The money is concentrated. Of roughly $40.1 billion across these funds, 95.5% sits in the five largest: XLU, VPU, FUTY, IDU and UTES. XLU alone holds about $23.1 billion.
Broad utilities ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 13 biggest broad utilities ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Constellation Energy Corp | 10 of 13 | 4.85% |
| NextEra Energy Inc | 9 of 13 | 10.16% |
| Southern Co | 9 of 13 | 5.97% |
| Duke Energy Corp | 9 of 13 | 5.48% |
| American Electric Power Co Inc | 9 of 13 | 4.3% |
| Sempra | 9 of 13 | 3.65% |
| Entergy Corp | 9 of 13 | 3.21% |
| Vistra Corp | 9 of 13 | 3.18% |
| Xcel Energy Inc | 9 of 13 | 3.18% |
| Exelon Corp | 9 of 13 | 3.05% |
| Dominion Energy Inc | 8 of 13 | 3.41% |
| Consolidated Edison Inc | 8 of 13 | 2.61% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest broad utilities ETFs, side by side
Swipe the table to see all 5 funds.
| XLU | VPU | FUTY | IDU | UTES | |
|---|---|---|---|---|---|
| Net assets | $23.11B | $10.08B | $2.32B | $1.46B | $1.31B |
| Expense ratio | 0.08% | 0.09% | 0.08% | 0.37% | 0.49% |
| Holdings | 31 | 68 | 62 | 45 | 18 |
| In the 10 largest | 57.53% | 52.65% | 52.31% | 51.98% | 68.99% |
| Biggest holding | NextEra Energy Inc (12.89%) | NextEra Energy Inc (11.75%) | NextEra Energy Inc (11.81%) | Nextera Energy, Inc. (11.2%) | Constellation Energy Corp (11.14%) |
| Yield | 2.79% | 2.81% | 2.77% | 2.35% | 1.61% |
| 1-year return | -0.4% | -4.1% | -4.0% | -2.5% | -10.1% |
| 3 years, a year | -7.8% | +17.0% | +17.0% | +17.2% | +24.6% |
| 5 years, a year | -6.5% | +8.1% | +8.2% | +8.4% | +13.8% |
| Worst drop, past year | -16.1% | -15.6% | -15.5% | -15.3% | -17.6% |
| Launched | 1998 | 2004 | 2013 | 2000 | 2015 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 30, 2026.
Head to head
XLU vs VPU
XLU and VPU are the two largest utilities ETFs, and 89.3% of their assets overlap. XLU holds 31 stocks, with 57.5% in its top ten and 12.9% in NextEra Energy. VPU spreads across 68 stocks, with 52.7% in its top ten and 11.8% in NextEra. Fees are 0.08% and 0.09% a year, and yields were 2.79% and 2.81% as of October 30, 2026. Over the year to that date, XLU lost 0.4% and VPU 4.1%. Their worst drops were 16.1% and 15.6%. XLU may suit investors who want a shorter list of stocks, and VPU those who prefer a wider spread.
VPU vs FUTY
VPU and FUTY are near twins: 97.8% of their assets overlap, with 62 stocks in common. Both keep about 52% to 53% in their top ten, led by NextEra Energy at roughly 11.8%. FUTY charges 0.084% a year and VPU 0.09%. Over the year to October 30, 2026, VPU lost 4.1% and FUTY 4.0%, their worst drops were 15.6% and 15.5%, and their three- and five-year results were nearly identical. VPU is far larger, at about $10.1 billion versus $2.3 billion. The choice may come down to cost or where an investor keeps an account.
XLU vs UTES
XLU and UTES share 16 stocks, and 46.3% of their assets overlap. XLU holds 31 stocks led by NextEra Energy at 12.9%. UTES names no index and holds 18, with 69% in its top ten, led by Constellation Energy, Talen Energy and Vistra at about 10% to 11% each. UTES charges 0.49% a year versus 0.08%, and it yielded 1.61% versus 2.79% as of October 30, 2026. Over that year UTES lost 10.1% and XLU 0.4%. Their worst drops were 17.6% and 16.1%. UTES may suit investors comfortable with a concentrated, different mix, and XLU those wanting low-cost sector exposure.
How much do the largest broad utilities ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| VPU and FUTY | 97.8% | 62 | |
| XLU and FUTY | 90.1% | 31 | |
| FUTY and IDU | 90% | 40 | |
| XLU and VPU | 89.3% | 31 | |
| VPU and IDU | 89.1% | 40 | |
| XLU and IDU | 85.6% | 31 | |
| XLU and UTES | 46.3% | 16 | |
| VPU and UTES | 43.4% | 18 | |
| FUTY and UTES | 43.3% | 18 | |
| IDU and UTES | 41.5% | 18 |
From each fund’s full holdings in its latest N-PORT report.
How have broad utilities ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing broad utilities ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | FXU First Trust Utilities AlphaDEX Fund | $831.0M | 0.61% | +8.9% | +8.1% | +4.1% | +22.3% |
| 2 | JXI iShares Global Utilities ETF | $322.8M | 0.37% | +5.9% | +5.5% | +3.4% | +18.7% |
| 3 | XLU Utilities Select Sector SPDR Fund | $23.11B | 0.08% | +10.1% | +3.8% | -0.4% | -7.8% |
| 4 | RSPU Invesco S&P 500 Equal Weight Utilities ETF | $538.5M | 0.4% | +8.5% | +3.9% | -1.5% | +18.0% |
| 5 | IDU iShares U.S. Utilities ETF | $1.46B | 0.37% | +8.6% | +3.1% | -2.5% | +17.2% |
| 6 | FUTY Fidelity MSCI Utilities Index ETF | $2.32B | 0.08% | +8.1% | +2.3% | -4.0% | +17.0% |
| 7 | VPU Vanguard Utilities ETF | $10.08B† | 0.09% | +8.1% | +2.2% | -4.1% | +17.0% |
| 8 | PUI Invesco Dorsey Wright Utilities Momentum ETF | $54.6M | 0.6% | +6.5% | +2.4% | -5.9% | +16.7% |
| 9 | UTES Virtus Reaves Utilities ETF | $1.31B | 0.49% | +8.4% | -2.5% | -10.1% | +24.6% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How broad utilities ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| XLU | -44.3% | -35.7% | -12.3% |
| VPU | not yet launched | not yet launched | -11.5% |
| FUTY | not yet launched | -35.7% | -11.4% |
| IDU | -45.7% | -35.6% | -11.2% |
| UTES | not yet launched | not yet launched | -11.2% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives broad utilities ETFs?
Most companies in these funds produce and deliver electricity, natural gas or water. Many are regulated monopolies: state regulators set the rates they charge and the return they may earn on power plants, pipelines and wires. That tends to keep profits steadier than in most industries, because households and businesses keep paying power bills in a recession. Interest rates matter a great deal. Utilities borrow heavily to build, and income investors often weigh their dividends against bond yields, so rising rates tend to push share prices down. Fuel costs, weather, rate decisions and growth in electricity demand also move results.
That steadiness has helped in some downturns but not all. In the 2008 financial crisis, XLU fell 44.3% and IDU 45.7%, compared with 55.2% for the S&P 500. In the 2020 COVID crash, utilities offered little shelter: XLU and FUTY dropped 35.7% and IDU 35.6%, slightly more than the S&P 500's 33.7%. In the 2022 bear market, VPU, FUTY, IDU and UTES lost between 11.2% and 11.5%, and XLU 12.3%, roughly half the S&P 500's 24.5% decline. Steady income does not guarantee steady prices.
Broad utilities ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | XLU Utilities Select Sector SPDR Fund | 0.08% | $8 a year | $23.11B |
| 2 | FUTY Fidelity MSCI Utilities Index ETF | 0.08% | $8 a year | $2.32B |
| 3 | VPU Vanguard Utilities ETF | 0.09% | $9 a year | $10.08B |
| 4 | PSCU Invesco S&P SmallCap Utilities & Communicatio… | 0.29% | $29 a year | $16.0M |
| 5 | IDU iShares U.S. Utilities ETF | 0.37% | $37 a year | $1.46B |
Ordinary funds with at least $10 million in net assets. The median ordinary broad utilities ETF charges 0.37% a year; leveraged and inverse funds usually charge more.
Do broad utilities ETFs pay dividends?
10 of the 10 ordinary broad utilities ETFs with a page here paid distributions over the last 12 months, with a median yield of 2.35%.
| Highest yields | Yield | Net assets |
|---|---|---|
| VPU Vanguard Utilities ETF | 2.81% | $10.08B |
| XLU Utilities Select Sector SPDR Fund | 2.79% | $23.11B |
| FUTY Fidelity MSCI Utilities Index ETF | 2.77% | $2.32B |
| RSPU Invesco S&P 500 Equal Weight Utilities ETF | 2.68% | $538.5M |
| JXI iShares Global Utilities ETF | 2.5% | $322.8M |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a broad utilities ETF
- Yearly fees range widely. XLU (0.08% a year), FUTY (0.084%) and VPU (0.09%) cost far less than IDU (0.37%), UTES (0.49%), PUI (0.60%) or FXU (0.61%). Since the three lowest-cost funds overlap heavily, fees are one of their clearest differences.
- How much rides on the top ten. XLU holds 31 stocks, with 57.5% in its top ten and 12.9% in NextEra Energy. VPU (68 stocks) and FUTY (62) spread a little wider. UTES puts 69% of its money in its top ten of 18 holdings.
- Size-weighted, equal-weighted or rules-based. In the big index funds, the largest companies get the largest weights. RSPU weights its holdings about equally, so its largest is just 3.55%. FXU tracks the StrataQuant Utilities Index, and PUI a Dorsey Wright momentum index.
- UTES breaks from the index funds. UTES names no index and holds 18 stocks led by Constellation Energy, Talen Energy and Vistra. Just 41.5% to 46.3% of its assets overlap with the four big index funds, so its results can differ sharply.
- Global or small-company versions. JXI holds 75 stocks worldwide, including Iberdrola and Enel alongside NextEra, for 0.37% a year. PSCU, at 0.29%, owns small companies, and its largest holdings are communication services firms such as Match Group and Lumen Technologies.
- Leveraged and inverse funds are trading tools. UTSL (3x), UPW (2x) and SDP (-2x) reset daily and charge 0.95% to 0.97% a year. Over the year to October 30, 2026, XLU lost 0.4%, while UPW, which aims for twice the same index's daily move, lost 14.7%.
What are the risks of broad utilities ETFs?
- Heavy reliance on NextEra Energy. NextEra Energy is the largest holding in XLU (12.9%), VPU (11.8%), FUTY (11.8%) and IDU (11.2%). Their top ten stocks make up 52% to 58% of each fund, so trouble at a handful of companies can move the fund.
- Interest rates and heavy borrowing. Utilities borrow heavily to build plants and power lines, and many investors own them for income. Rising interest rates can raise their costs and make their dividends look less attractive next to bond yields.
- Regulators decide what many can earn. Many utility profits depend on rates approved by state regulators. Unfavorable rate decisions, political pressure over power bills, or large storm and wildfire costs can cut earnings across the companies these funds share.
- Concentrated funds swung harder. UTES, with 69% in its top ten, had 22.5% volatility (a measure of how much prices bounce around) in the year to October 30, 2026. XLU, VPU and FUTY were at about 15% to 16%. UTES lost 10.1%.
- Leveraged funds can lose fast. UTSL had 47.4% volatility and fell as much as 46.7% in the year to October 30, 2026. UTSL, UPW and SDP reset daily, so over longer periods their results can drift far from 3x, 2x or -2x the index.
Leveraged and inverse broad utilities ETFs (2x and 3x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all broad utilities ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | XLU Utilities Select Sector SPDR Fund | $23.11B | 0.08% | 2.79% | +3.8% | -0.4% | -6.5% |
| 2 | VPU Vanguard Utilities ETF | $10.08B† | 0.09% | 2.81% | +2.2% | -4.1% | +8.1% |
| 3 | FUTY Fidelity MSCI Utilities Index ETF | $2.32B | 0.08% | 2.77% | +2.3% | -4.0% | +8.2% |
| 4 | IDU iShares U.S. Utilities ETF | $1.46B | 0.37% | 2.35% | +3.1% | -2.5% | +8.4% |
| 5 | UTES Virtus Reaves Utilities ETF | $1.31B | 0.49% | 1.61% | -2.5% | -10.1% | +13.8% |
| 6 | FXU First Trust Utilities AlphaDEX Fund | $831.0M | 0.61% | 2.34% | +8.1% | +4.1% | +11.9% |
| 7 | RSPU Invesco S&P 500 Equal Weight Utilities ETF | $538.5M | 0.4% | 2.68% | +3.9% | -1.5% | — |
| 8 | JXI iShares Global Utilities ETF | $322.8M | 0.37% | 2.5% | +5.5% | +3.4% | +9.0% |
| 9 | PUI Invesco Dorsey Wright Utilities Momentum ETF | $54.6M | 0.6% | 2.21% | +2.4% | -5.9% | +7.7% |
| 10 | UTSL Direxion Daily Utilities Bull 3X Shares Leveraged | $37.9M | 0.97% | 2.53% | -7.4% | -25.5% | +4.8% |
Questions investors ask about broad utilities ETFs
What is the largest utilities ETF?
XLU, the Utilities Select Sector SPDR Fund from State Street, is the largest, with about $23.1 billion in assets. It launched in December 1998 and holds 31 stocks, led by NextEra Energy, Southern Co and Duke Energy. Vanguard's VPU is next at about $10.1 billion, followed by Fidelity's FUTY at about $2.3 billion and iShares' IDU at about $1.5 billion.
What is the cheapest utilities ETF?
XLU has the lowest expense ratio, the yearly fee taken from fund assets, at 0.08%. Fidelity's FUTY (0.084%) and Vanguard's VPU (0.09%) are close behind and hold very similar stocks. PSCU charges 0.29%, but its largest holdings are communication services companies such as Match Group. IDU charges 0.37%, and the median across all the funds is 0.40%.
XLU vs VPU: what's the difference?
They hold mostly the same companies, with 89.3% of their assets in common. XLU owns 31 stocks and charges 0.08% a year. VPU owns 68 and charges 0.09%. Both are led by NextEra Energy, at 12.9% of XLU and 11.8% of VPU. Their yields were both about 2.8% as of October 30, 2026. Over the year to that date, XLU lost 0.4% and VPU 4.1%.
Do utilities ETFs pay dividends?
Yes. All 10 utilities ETFs with a reported yield pay dividends, and their median yield was 2.35% as of October 30, 2026. Yield is a year's income from the fund divided by its share price. VPU (2.81%), XLU (2.79%) and FUTY (2.77%) had the highest yields, followed by RSPU (2.68%) and JXI (2.50%). UTES, which holds just 18 stocks, yielded 1.61%.
Which utilities ETFs hold NextEra Energy?
Most do. Nine of the 13 funds hold NextEra Energy. It is the largest holding in XLU (12.9%), VPU (11.8%), FUTY (11.8%), IDU (11.2%) and the global JXI (8.0%). Constellation Energy is even more widely held: it appears in 10 funds and is the top holding in UTES. RSPU, PUI, FXU and UTES give NextEra much less weight, or none.
How many utilities ETFs are there?
There are 13 US-listed utilities ETFs, holding about $40.1 billion in total. Three of them, UTSL, UPW and SDP, are leveraged or inverse. The money is concentrated: 95.5% sits in the five largest funds, XLU, VPU, FUTY, IDU and UTES. The smallest, SDP, has about $4.6 million.
What are leveraged and inverse utilities ETFs?
They are short-term trading tools. Direxion's UTSL aims for 3 times the daily move of a utilities index, ProShares' UPW for 2 times and ProShares' SDP for minus 2 times. They reset every day, so results over months can differ widely from those multiples. Over the year to October 30, 2026, XLU lost 0.4%, while UPW lost 14.7%, UTSL lost 25.5% and SDP gained 9.8%. They charge 0.95% to 0.97% a year.
Do utilities ETFs hold up in a stock market crash?
Sometimes, but not always. In the 2008 financial crisis, XLU fell 44.3%, less than the S&P 500's 55.2%. In the 2022 bear market, XLU fell 12.3% and VPU 11.5%, against 24.5% for the S&P 500. But in the 2020 COVID crash, XLU and FUTY dropped 35.7%, a bit more than the S&P 500's 33.7%. Utilities funds can still lose a lot of value quickly.
Is there a Vanguard, Fidelity or Schwab utilities ETF?
Yes. Vanguard offers one: VPU (Vanguard Utilities ETF). Fidelity offers one: FUTY (Fidelity MSCI Utilities Index ETF). Schwab doesn’t have a utilities ETF.
