At a glance
UTES charges 0.49% a year, above the 0.32% average of the 8 funds most like it (the 7th cheapest of 9). It has $1.31B in assets, the 5th largest of that group; it paid 1.61% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −10.1% with distributions reinvested (S&P 500: +11.5%), the weakest of those 9 funds; over three years it returned +24.6% a year. At its worst it fell 19.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 18 months after the low. Its ten largest positions make up 69.0% of the fund, out of 18 in all.
The short version
Virtus Reaves Utilities ETF (UTES) is an actively managed fund. Instead of tracking an index, its manager, Reaves Asset Management, picks a small group of mostly U.S. utility stocks. It is more concentrated than most utilities funds: as of July 31, 2026, it held 18 stocks, with 69% in the top 10. Its 0.49% expense ratio is above the 0.32% average of similar funds.
Price history
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UTES -10.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| UTES official prospectus, to Dec 31, 2024 | — | +45.30% | — | +11.57% | — | +13.24% |
| UTES price data to Oct 27, 2026 | -2.5% | -10.1% | +24.6% | +13.8% | — | +13.7% |
- Over the year to Oct 27, 2026, UTES returned -10.1%, 9th of 9 among similar funds.
- Its 5-year annualized return was +13.8%.
- Its worst full calendar year was 2023 (-2.4%); its best was 2024 (+45.3%).
- The deepest fall in its price history was 20.4% (Sep 12, 2022 to Oct 2, 2023), recovered by Apr 25, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -2.5% | — |
| 2025 | +25.7% | — |
| 2024 | +45.3% | +45.30% |
| 2023 | -2.4% | -2.40% |
| 2022 | +0.8% | +0.81% |
| 2021 | +20.7% | +20.64% |
| 2020 | — | +0.24% |
| 2019 | — | +24.77% |
| 2018 | — | +5.50% |
| 2017 | — | +13.45% |
| 2016 | — | +15.77% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 11.2% over that stretch · deepest drop along the way 19.3%, back to its old high 18.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8300 | |
| 2025 | $1.1200 | +16.7% |
| 2024 | $0.9600 | -11.9% |
| 2023 | $1.0900 | +9.0% |
| 2022 | $1.0000 | +8.7% |
| 2021 | $0.9200 |
What's inside
As of Jul 31, 2026, the fund held 18 securities; the ten largest made up 68.99% of assets.
| Holding | Weight | |
|---|---|---|
| CONSTELLATION ENERGY CORP | 11.14% | |
| TALEN ENERGY CORP | 10.72% | |
| VISTRA CORP | 9.96% | |
| XCEL ENERGY INC | 7.07% | |
| CENTERPOINT ENERGY INC | 6.64% | |
| AMERICAN ELECTRIC POWER COMPANY INC | 4.75% | |
| ALLIANT ENERGY CORP | 4.75% | |
| ENTERGY CORP | 4.69% | |
| IDACORP INC | 4.64% | |
| SEMPRA | 4.61% | |
| NRG ENERGY INC | 4.40% | |
| WEC ENERGY GROUP INC | 4.30% | |
| NEXTERA ENERGY INC | 4.01% | |
| AMEREN CORP | 4.00% | |
| DTE ENERGY COMPANY | 3.95% |
By country
United States 99.73%By asset type
Stocks 99.73%By sector
Sectors of the companies held, for the 65.2% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $149.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -4.16%, +1.78%, -5.19%.
How it works
UTES does not track an index. It is an actively managed ETF, which means a professional manager picks the stocks. Under normal conditions it keeps at least 80% of its net assets in utility companies. The fund defines these as firms that get at least half of their assets, customers, revenues or profits from generating or distributing electricity, gas or water. Virtus Investment Partners is the issuer. The sub-adviser, Reaves Asset Management, makes the day-to-day choices.
Reaves uses a value-based, bottom-up approach. It studies companies one at a time and looks for stocks it sees as attractively priced, given their potential to grow both income and share price. It favors firms with modest debt, solid balance sheets, rising earnings and dividends (or the potential for them), possible positive catalysts, and lower volatility than the market. It can own companies of any size and some foreign stocks, but it invests mainly in the U.S.
No index formula sets the weights, so position sizes reflect the manager's views. The fund is non-diversified, which means it can put more money into a single stock than a diversified fund can. As of July 31, 2026, it held 18 stocks and no derivatives. The largest positions were Constellation Energy (11.1%), Talen Energy (10.7%) and Vistra (10.0%). Portfolio turnover, the share of holdings replaced over a year, was 66%.
What it really costs
- UTES charges 0.49% a year, versus an average of 0.32% for the similar funds below (7th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $50 in the first year and $616 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| UTES | $50 | $157 | $274 | $616 |
In a retirement portfolio
UTES puts a concentrated, actively picked bet on 18 utility stocks, and its price swings have been larger than many people expect from utilities.
UTES could add utility exposure that has tended to move less than the overall market. Its beta, a measure of sensitivity to market moves, was 0.6 over the year to October 27, 2026. Still, its one-year volatility was 22.5%. The fund launched in 2015, so it has no record for 2008. It lost 14.17% in the first quarter of 2020 but ended that year up 0.24%. In 2022 it fell 19.3% between September 12 and October 12. Its deepest drop, 20.4%, ran until October 2, 2023, and it had fully recovered by April 25, 2024. Its worst calendar year was 2023, at -2.4%. Anyone forced to cash out during a stretch like that would lock in losses.
Income is modest: a 1.61% yield over the past 12 months, paid quarterly, as of October 27, 2026. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want about 18 hand-picked utility stocks chosen by specialists at Reaves Asset Management, rather than an index fund owning the whole sector.
- People comfortable with big single-stock bets: Constellation Energy, Talen Energy and Vistra were each about 10–11% of assets as of July 31, 2026.
- Long-term holders who can ride out drops like the fund's 20.4% decline from September 2022 to October 2023.
Look elsewhere if
- Cost-focused investors: index funds such as XLU (0.08%) and VPU (0.09%) charge far less than UTES's 0.49% expense ratio.
- Income seekers wanting a high payout: the yield over the past 12 months was 1.61% as of October 27, 2026, paid quarterly.
- Anyone wanting steadier results: UTES lost 10.1% over the year to October 27, 2026, the weakest of nine similar funds.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| UTES this fund | — | 0.49% | $1.31B | -10.1% | +24.6% |
| RSPU Invesco S&P 500 Equal Weight Utilities ETF | 51% | 0.4% | $538.5M | -1.5% | +18.0% |
| PUI Invesco Dorsey Wright Utilities Momentum ETF | 49% | 0.6% | $54.6M | -5.9% | +16.7% |
| XLU Utilities Select Sector SPDR Fund | 46% | 0.08% | $23.11B | -0.4% | -7.8% |
| VPU Vanguard Utilities ETF | 43% | 0.09% | $10.08B | -4.1% | +17.0% |
| FUTY Fidelity MSCI Utilities Index ETF | 43% | 0.084% | $2.32B | -4.0% | +17.0% |
| IDU iShares U.S. Utilities ETF | 41% | 0.39% | $1.46B | -2.5% | +17.2% |
| ZAP Global X U.S. Electrification ETF | 32% | 0.5% | $461.7M | +3.6% | — |
Questions investors ask
Is UTES good for retirement?
It depends on the role. UTES is a concentrated, actively managed utilities fund with 18 stocks as of July 31, 2026. That makes it more of a small add-on than a core holding. Its one-year volatility was 22.5% as of October 27, 2026, and its deepest drop was 20.4%, from September 2022 to October 2023. It pays a modest 1.61% yield quarterly. In the SEC's standard example, costs on $10,000 come to $50 after one year and $616 after ten.
What's the difference between UTES and RSPU?
UTES is actively managed. RSPU, the Invesco S&P 500 Equal Weight Utilities ETF, follows an index that gives each stock the same weight. About 51% of their holdings overlap. RSPU costs 0.40% a year, compared with 0.49% for UTES. As of October 27, 2026, UTES returned 24.6% a year over three years, versus 18% for RSPU. Over one year, though, UTES lost 10.1% while RSPU lost 1.5%.
Does UTES pay monthly dividends?
No. UTES pays distributions quarterly. Over the 12 months to October 27, 2026, it paid $1.23 per share, a yield of 1.61%. The prospectus warns that utility companies can cut or stop their dividends at any time. It also notes that higher-yielding stocks can lose value when interest rates rise, which can affect both the fund's income and its share price.
How has UTES performed since it launched?
From its 2015 launch through December 31, 2024, UTES returned 13.24% a year, according to its prospectus. Its five-year return was 11.57% a year, and 2024 alone brought a 45.3% gain. Results have been uneven. The fund lost 2.4% in 2023 and gained less than 1% in both 2020 and 2022. Based on price, it rose 25.7% in 2025 and was down 2.47% for 2026 through October 27.
What are UTES's top holdings?
As of July 31, 2026, the largest holdings were Constellation Energy (11.1%), Talen Energy (10.7%), Vistra (10.0%), Xcel Energy (7.1%) and CenterPoint Energy (6.6%). The next names were American Electric Power, Alliant Energy, Entergy, IDACORP and Sempra, each near 4.6% to 4.8%. The top 10 made up 69% of the fund's $1.31 billion in net assets. Nearly all of the money was in U.S. stocks.