最新ニュース Vanguard Utilities ETF (ARCA:VPU)

Vanguard Utilities ETF

Vanguard Utilities ETF - DNQ

Utilities

Energy

Technology

The fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index (IMI)/Utilities 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the utilities sector, as classified under the Global Industry Classification Standard (GICS). The Advisor attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. The fund is non-diversified.

Nextera Energy Inc.

Southern Co.

Duke Energy Corp.

Constellation Energy Corp

Sempra Energy

American Electric Power Co. Inc.

Dominion Energy Inc.

Public Service Enterprise Group Inc.

Pg&E Corp.

Exelon Corp.

Activist investor Dan Loeb&#8216;s Third Point LLC <a href="https://www.benzinga.com/topic/dan-loeb">adjusted its portfolio</a> in the third quarter of 2024, trimming stakes in several major companies, including technology and utility stocks.
PCG: Third Point reduced shares in one of the leading natural gas and electric energy companies, Pacific Gas &amp; Electric Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PCG#NYSE">PCG</a>), to <a target="_blank" href="https://www.sec.gov/Archives/edgar/data/1040273/000108514624005927/xslForm13F_X02/infotable.xml" rel="noreferrer noopener">49.7 </a>million in the third quarter of FY24 from 56.9 million shares in the third quarter of <a target="_blank" href="https://www.sec.gov/Archives/edgar/data/1040273/000108514623004511/xslForm13F_X02/infotable.xml" rel="noreferrer noopener">FY23</a>.
Although the investor gradually lowered shares in the company throughout the period, the stock is still the fund's largest&nbsp;<a href="https://www.benzinga.com/news/large-cap/25/01/42788070/hedge-fund-giant-dan-loebs-pge-bet-beats-market" target="_blank" rel="noreferrer noopener">holding as of Sept. 30, 2024.</a>
The stock declined 4.4% in the last year, underperforming the Vanguard Utilities Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VPU#NYSE">VPU</a>), which has&nbsp;gained 29.2%&nbsp;over the same time frame.
Importantly, the company reported a third-quarter adjusted EPS of 37 cents, exceeding analysts' expectations of 33 cents, but revenue of $5.94 billion, falling short of <a href="https://www.benzinga.com/news/large-cap/25/01/42788070/hedge-fund-giant-dan-loebs-pge-bet-beats-market" target="_blank" rel="noreferrer noopener">the&nbsp;consensus estimate of $6.61 billion</a>.
The company will report fourth-quarter <a href="https://www.benzinga.com/earnings" target="_blank" rel="noreferrer noopener">results on Feb. 13, 2025</a>.
Also Read: <a href="https://www.benzinga.com/government/regulations/25/02/43440692/us-mexico-agrees-on-one-month-tariffs-pause-stocks-rebound-peso-rallies">US, Mexico Agree On 1-Month Tariff Pause: Stocks Rebound, Peso Rallies</a>
AMZN: Apart from this, the investor cut shares in technology giant Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) to 3.7 million in the third quarter of FY24 from 4.9 million in the third quarter of FY23.&nbsp;&nbsp;
Notably, Third Point increased its AMZN shares in the <a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514624002645/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">first </a>quarter of 2024 but lowered the number in the third quarter of 2024.
Amazon&#8217;s share escalated 40.51% in the last year, outperforming the Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>), which has&nbsp;surged 29.81%&nbsp;over the same time frame.
Notably, Amazon reported the company posted mixed&nbsp;second-quarter&nbsp;FY24 results and gave soft third-quarter <a target="_blank" href="https://www.benzinga.com//node/40131294" rel="noreferrer noopener">guidance in August 2024</a>.
On Aug. 5, 2024 the company&#8217;s shares dropped to a six-month low of $151.61 in intraday trading, breaching the 21-day, 50-day, and 200-day moving averages.
MSFT: Moreover, Third Point significantly curtailed shares in software giant Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) to 870,000 shares in third-quarter FY24 from 2.2 million in third-quarter FY23.
The stock gained 2.4% over the past year, lagging the&nbsp;&nbsp;iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>), which rose 22.9% in the same period.
META: The investor slashed shares by half in Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) to 545,000 shares in third-quarter FY24 from 1.1 million in <a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514624004004/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">the </a>second quarter of 2024.
The company&#8217;s share jumped 51.6% in the last year, outperforming the iShares Global Comm Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>), which upped 28.8%&nbsp;over the same time frame.
Read Next:
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<li><a href="https://www.benzinga.com//node/43431559" target="_blank" rel="noreferrer noopener">Amazon, Temu, and Shein Under EU Scrutiny, Regulators Target Illegal Products and Tougher E-Commerce Rules</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Equities

Large Cap

AMZN

FDIS

iShares Trust S&P Global Telecommunications Sector Index Fund

iShares Dow Jones US Technology Sector Index Fund

MSFT

Dan Loeb's Third Point Trims Amazon, Microsoft, Meta As Tech Stocks Climb

NextEra Energy Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>) shares are trading higher after it <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/n43188070/nextera-energy-fourth-quarter-and-full-year-2024-financial-results-available-on-companys-website" rel="noreferrer noopener">reported fourth-quarter FY24 results</a>.
Revenue of&nbsp;$5.385 billion missed the estimate of&nbsp;$7.525 billion and adjusted EPS of&nbsp;$0.53 was <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">in line with the consensus</a>.
Operating income declined to&nbsp;$941 million from $2.660 billion in the year-ago quarter.
Florida Power &amp; Light Company&nbsp;(<a target="_blank" href="https://www.investor.nexteraenergy.com/~/media/Files/N/NEE-IR/news-and-events/events-and-presentations/2025/2025-0124%20NEEQ42024News%20Release%20vFinal.pdf" rel="noreferrer noopener">FPL</a>) segment adjusted net income declined slightly to $845 million from $846 million in the&nbsp;third quarter&nbsp;of 2023.
Meanwhile, Next Energy Resources&#8217; adjusted earnings rose to $446 million from $361 million in the fourth quarter of 2023.
Cash flows from operating activities for the year totaled $13.260 billion, compared to $11.301 billion a year ago. As of December 31, 2024, cash and cash equivalents stood at $1.487 billion.
Outlook: For FY25, NextEra Energy continues to expect adjusted EPS of&nbsp;$3.45-$3.70. <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">vs. consensus of&nbsp;$3.68</a>.
Also, NextEra Energy expects adjusted EPS of $3.63-$4.00 in 2026 and $3.85-$4.32 in 2027.
The company also expects to grow its dividends per share by approximately 10% annually through at least 2026, based on a 2024 baseline. In addition, NextEra Energy&#8217;s long-term financial expectations remain unchanged.
John Ketchum, chairman, president and chief executive officer, said, &#8220;Continuing our track record of providing long-term value for shareholders, we have delivered compound annual growth in adjusted earnings per share of more than 10% since 2021 and of approximately 10% over the past 10 years, both of which are the highest among all top-10 power companies.&#8221;
&#8221;Given the strength of both of our businesses, we will be disappointed if we are not able to deliver financial results at or near the top of our adjusted earnings per share expectations ranges in each year through 2027, while maintaining our strong balance sheet and credit ratings.&#8221;
Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43174889/nextera-energy-charging-into-q4-earnings-will-clean-energys-powerhouse-keep-its-momentum" rel="noreferrer noopener">NextEra Energy: Charging Into Q4 Earnings — Will Clean Energy&#8217;s Powerhouse Keep Its Momentum?</a>
During the earnings call, the company stated that it inked a framework agreement with GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) <a target="_blank" href="https://www.investor.nexteraenergy.com/~/media/Files/N/NEE-IR/news-and-events/events-and-presentations/2025/Final_Q4%202024%20Script.pdf" rel="noreferrer noopener">to </a>develop natural gas-powered generation solutions.
This partnership is expected to support multiple gigawatts of capacity for data centers, manufacturing reshoring, industrial electrification, and various energy customers, including utilities and commercial sectors.
Over the next four years, both companies plan to collaborate to identify key grid locations for new generation.
GE Vernova will provide advanced natural gas technologies and electrification solutions, while NextEra Energy will integrate renewable, storage, and gas-fired generation solutions for large energy loads.
Also, NextEra requested U.S. regulators for a licensing change for the Duane Arnold nuclear plant to potentially restart the Iowa facility and aims to revive the reactor by the end of 2028.
Investors can gain exposure to the stock via SPDR Select Sector Fund &#8211; Utilities (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) and Vanguard Utilities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VPU#NYSE">VPU</a>).
Price Action: NEE shares are up 4.66% at $72.46 at last check Friday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/01/43108615/southern-power-grids-face-historic-winter-test-as-snow-blankets-gulf" target="_blank" rel="noreferrer noopener">Southern Power Grids Face Historic Winter Test As Snow Blankets Gulf Coast: 5 Utilities To Watch</a></li>
</ul>
Photo via Shutterstock.

Earnings

News

Guidance

Contracts

Movers

NextEra Energy Reports Mixed Q4 Results, Enters Partnership With GE Vernova For Grid Solutions

Utilities, the S&amp;P 500&#8217;s biggest laggard in 2023, staged a remarkable rebound in 2024, fueled by surging electricity demand driven by artificial intelligence, electrification, <a href="https://www.benzinga.com/topic/utilities">and decarbonization trends.</a>
Among the beneficiaries of this momentum are ETFs with exposure to utility stocks like GE Vernova (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>), Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) and NextEra Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEE#NYSE">NEE</a>), which may reap the benefits of the growing energy needs of data centers.
Three ETFs that can cash in on this trend include the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>), Vanguard Utilities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VPU#NYSE">VPU</a>), and Fidelity MSCI Utilities Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FUTY#NYSE">FUTY</a>), each offering a way to invest in a bunch of companies supporting the energy-intensive operations of data centers.
See Also: <a href="https://www.benzinga.com/25/01/42961753/analyst-sees-broadening-rally-in-semis-coming-in-2025-2-top-stock-picks-and-2-to-avoid">Analyst Sees ‘Broadening Rally' In Semiconductors In 2025: 2 Top Stock Picks, 2 To Avoid</a>
The Utilities Select Sector SPDR Fund, with an expense ratio of a mere 0.09% and assets of $16.39 billion under management, holds promise. NextEra,&nbsp;Constellation Energy&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>), and Vistra are among the top holdings of this fund, which mirrors the Utilities Select Sector Index as a benchmark.
The Vanguard Utilities ETF has an expense ratio of 0.10% and $8.8 billion in assets under management. This fund also gives significant weightage to NextEta, Constellation, and Vistra.
The Fidelity MSCI Utilities Index ETF is exposed to Nextra, Constellation and Vistra as well, and carries an expense ratio of 0.08%. 
Why Utilities Are Thriving
We often hear the phrase &#8220;data is the new oil&#8221; these days, and data centers, the backbone of the digital world, are often overlooked as power consumers. Supporting real-time communication, data storage, and cloud-based operations to run technologies like smartphones and connected appliances requires massive electricity, and there is one sector that data centers rely on for power &#8211; utility providers.
According to the International Energy Agency, data centers and data transmission networks comprise 1%-1.5% of global electricity use.
The increasing integration of AI, which relies on energy-intensive computations, further boosts this demand. Power demand growth for utilities—historically stagnant at 1%-2% annually—is now expected to climb to about 6-8% annually for the next decade, driven by these technological trends, <a href="https://www.fidelity.com/learning-center/trading-investing/outlook-utilities">reported </a>Fidelity Investments.
Utilities are traditionally a defensive sector with stability and lower sensitivity to economic fluctuations, as evident from &#8220;a lower beta relative to other sectors to the broad market,&#8221; per Fidelity.
These factors appealed to investors during a dynamic year. According to a Deloitte&nbsp;<a href="https://www2.deloitte.com/us/en/insights/industry/technology/technology-media-and-telecom-predictions/2025/genai-power-consumption-creates-need-for-more-sustainable-data-centers.html" target="_blank" rel="noopener">report</a>, the annual power consumption of AI data centers&nbsp;is anticipated to increase 10 times from 2022 and hit 90 terawatt-hours by 2026. The utility sector and ETFs exposed to it appear to be on an upward trajectory.
See Next: 
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<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/01/42958533/how-trumps-maganomics-could-power-industrials-focused-etfs">How Trump's ‘Maganomics' Could Power Industrials-Focused ETFs</a></li>
</ul>
Photo: Sundry Photography/ Shutterstock.com

Sector ETFs

ETFs

FUTY

Utilities Rebound As AI Powers Energy Demand: 3 ETFs To Watch

California utility companies could come under pressure from regulators and investors after devastating Los Angeles wildfires have left at five people dead and almost 180,000 evacuated from their homes due to <a href="https://www.benzinga.com/25/01/42899028/la-wildfire-damages-estimated-above-52-billion-california-property-insurance-crisis">multiple wildfires</a>. 
Here's the latest.
What Happened: Areas near Los Angeles, California have <a href="https://www.benzinga.com/general/entertainment/25/01/42888380/los-angeles-fires-shut-down-production-of-tv-shows-fallout-abbott-elementary-hacks-film-premieres-canceled-critics-choice-awards-delayed">been hardest hit</a> by one of the most destructive wildfire events in the state.
At least five people are dead, found in buildings in Altadena, where the Eaton Fire exploded Tuesday night, as <a href="https://www.latimes.com/california/story/2025-01-08/fire-weather-fierce-winds-los-angeles">reported </a>by the LA Times.
179,783 people are under evacuation orders as of Thursday, according to Los Angeles Sheriff Robert Luna, <a href="https://www.nbcnews.com/weather/wildfires/live-blog/california-wildfires-live-updates-deadly-blazes-spread-hollywood-hills-rcna186927">NBC News </a>reported. Another 200,000 face evacuation warnings. 
Over 2,000 buildings have been burned. Multiple fires continue blazing Thursday and have not been contained.
&#8220;What we saw here in the last 24 hours is unprecedented," LAPD Chief Jim McDonnell said Wednesday. "I've never seen anything like this."
Limited resources including a lack of firefighters, firetrucks and water in fire hydrants have been reported in several regions.
California Gov. Gavin Newsom has called on the National Guard for its assistance in helping with evacuation orders and to assist with the devastating fires.
Read Also: <a href="https://www.benzinga.com/general/space/25/01/42892886/spacex-ceo-elon-musk-offers-free-starlink-terminals-to-los-angeles-areas-affected-by-wildfires">SpaceX CEO Elon Musk Offers Free Starlink Terminals To Los Angeles Areas Affected By Wildfires</a>
Utility Stocks in Focus: Utility companies including Edison International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EIX#NYSE">EIX</a>) and San Diego Gas &amp; Electric, which is owned by Sempra (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SRE#NYSE">SRE</a>), began cutting power to customers to reduce fire risk ahead of elevated winds during the week, as reported by The New York Times.
Edison plans to continue utility shutoffs for customers through Friday after already cutting power to over 150,000 customers.
Restoration of power for customers will depend on future weather, the containment of fires and inspections of power lines.
"Our top concern right now is the safety of our customers, crew members and emergency personnel," Edison spokesman David Eisenhauer said.
Edison <a href="https://www.businesswire.com/news/home/20250108156871/en/Edison-International-Provides-Update-on-Southern-California-Wildfires-and-SCE-Power-Outages">said </a>the fires, which it called an "extreme weather event," are an evolving situation it is monitoring.
"Safety remains our number one priority for customers, employees and our communities," the company said.
Public safety power shutoffs have been conducted by SDG&amp;E due to the dry conditions and Santa Ana winds, the company <a href="https://www.sdgetoday.com/news/sdge-responds-extreme-weather-continued-public-safety-power-shutoffs-0">said </a>Wednesday. The proactive measure is being done to protect public safety and help reduce wildfire risk.
A statement from Pacific Gas &amp; Electric (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PCG#NYSE">PCG</a>) <a href="https://www.pge.com/en/newsroom/currents/safety/southern-california-wildfires--pg-e-crews--helicopters-and-wildf.html">said </a>the company has sent helicopters and wildlife resources to the region to help with the fires, including two Blackhawk helicopters.
PG&amp;E said it is monitoring conditions in its serviced areas including Kern, Santa Barbara and San Luis Obispo counties.
Edison stock was <a href="https://www.benzinga.com/news/25/01/42894683/los-angeles-wildfires-stoke-investor-fears-edison-internationals-stock-ended-10-lower-on-wednesday-amid-concerns-over-possible-equipment-links-to-forest-fires">hit the hardest</a> of the utility companies connected to the California wildfires, falling 10% to $69.50 on Wednesday. The stock is now down 5% over the last year.
Pacific Gas &amp; Electric shares fell 4% to $19.25 on Wednesday.
Sempra shares fell 2% to $82.82 on Wednesday.
These utility companies remain top holdings in utility ETFs. In the SPDR Select Sector Fund – Utilities (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>), Sempra is the sixth largest holding at 4.5% of assets, PCG 10th largest at 3.6% of assets and EIX comprises 2.3% of the ETF&#8217;s assets.
In the Vanguard Utilities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VPU#NYSE">VPU</a>), Sempra (4.3% of assets), PG&amp;E (3.2% of assets) and Edison International (2.5%) are among the largest holdings. 
Fire Cause: One of the key question on the minds of California residents and investors will be who or what caused the fire. Right now, this remains a mystery.
As the New York Times <a href="https://www.nytimes.com/2025/01/08/us/what-caused-california-fires.html">reports</a>, scrutiny of power lines will likely come after the fires, as utility equipment has led to some of the largest California wildfires in the past, including the 2018 Camp Fire that left 85 people dead.
In 2024, four wildfire incidents were caused by utility equipment, including two by Edison International-owned Southern California Edison, according to the report.
Pacific Gas &amp; Electric, which may have limited exposure to this week&#8217;s infernos, is a lesson in the liability risk that California utilities face.
The utility company declared bankruptcy in 2019 related to damages and claims from wildfires. This included a<a href="https://www.benzinga.com/news/19/12/14953787/pg-e-trades-higher-on-13-5b-wildfires-settlement"> $13.5 billion settlement </a>for its alleged role in the fires. The company emerged from bankruptcy in 2020.
In 2024, Pacific Gas &amp; Electric paid $45 million in penalties related to the Dixie Fire in 2021, which state regulators found was linked to the company's power lines, as <a href="https://www.cnn.com/2024/01/26/us/pacific-gas-electric-settlement-dixie-fire-california/index.html">reported </a>by CNN.
California state law AB-1054, passed in 2019, established a Wildfire Fund of up to $21 billion to provide liquidity for fire events in the state and limits the liability of utility companies.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/general/sports/25/01/42889402/nhl-game-canceled-after-los-angeles-fires-nfl-monitoring-situation-ahead-of-monday-playoff-game">NHL Game Canceled After Los Angeles Fires, NFL Monitoring Situation Ahead Of Monday Playoff Game</a></li>
</ul>
Photo via Shutterstock.

Markets

Trading Ideas

5 Dead, Nearly 180,000 Evacuated In Los Angeles Wildfires: California Utilities Face Scrutiny

The year of milestones, 2024, has seen an unperturbed rise in the current bull market, which is nearly <a href="https://www.benzinga.com/24/12/42430296/carson-researchs-50-year-study-suggests-that-the-26-months-old-bull-market-is-far-from-over">26 months</a> old. It is higher by more than 70% from the mid-October 2022 lows. As we wrap up the year with the possibility of a &#8216;Santa Rally,&#8217; let&#8217;s recap 2024&#8217;s landmark junctures.
<h3 class="wp-block-heading">Major U.S. Benchmarks Scale Fresh Records</h3>
The S&amp;P 500 Index has made 57 new all-time highs this year, hitting the last one on Dec. 6, 2024. Also, &#8220;2024 would go down as the best election year return ever,&#8221; said Ryan Detrick, the chief market strategist at Carson Research in a note.
&#8220;Going back 50 years, we found five other bull markets that had lasted at least this long and the shortest any of them lasted was five total years. Think of it like a cruise ship — once it gets moving, it can be quite hard to stop,&#8221; added Detrick
While the S&amp;P 500 index was up 25.96% on a year-to-date basis as of Dec. 23 close, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose by 25.82% in the same period.
The Dow Jones Industrial Average index, on the other hand, hit a record eight 1,000-point milestones this year. It started the year around the 37,000 level and breached the 45,000 level at the beginning of December. It took only seven trading days for the index to go from 44,000 to 45,000, the second fastest 1,000-point milestone ever. Following that the index also saw one of its longest 10-day losing streak, the first ever since 1974.
Dow was up 13.77% year-to-date as of the Dec. 23 close, whereas the SPDR Dow Jones Industrial Average ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) gained 13.74% in the same period.
The Nasdaq 100 index which includes all the &#8216;magnificent seven&#8217; stocks, unlike Dow, rose 29.98% year-to-date as Dec. 23 close. The ETF tracking the index, Fidelity NASDAQ Composite Index ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ONEQ#NASDAQ">ONEQ</a>) rose by 33.85% in the same period. Whereas, the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose by 29.88% in 2024.
The smallcap index Russell 2000 was up 11.16% over the year, while iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) was up 10.97% in the same period as of the Dec. 23 close.
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-1024x576.png" alt="" class="wp-image-705432" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021350/CHARt-1-INDICES.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
See Also: <a href="https://www.benzinga.com/24/12/42430296/carson-researchs-50-year-study-suggests-that-the-26-months-old-bull-market-is-far-from-over">Is The 26-Month Bull Market Over? Here Is What Carson Research&#8217;s 50-Year Old Study Tells Us</a>
<h3 class="wp-block-heading">U.S. Market Trumps The World</h3>
Among the developed economies, the S&amp;P 500 remains the best index with a 25.96% gain on a year-to-date basis, outperforming all the other developed market indices.
While the <a href="https://x.com/RyanDetrick/status/1871317802306707882">first </a>year of a new president&#8217;s term has usually been strong since 1897, the returns during year one of a second term haven&#8217;t been very good overall, said Detrick.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Returns during year one of a second term haven&#39;t been very good overall, but way better lately. Down 5 in a row, but now up 4 in a row. &#x1f914; <a href="https://t.co/aUrCbf22Gw">pic.twitter.com/aUrCbf22Gw</a>
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1871320275129967103?ref_src=twsrc%5Etfw">December 23, 2024</a></blockquote>
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</figure>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Developed Markets</td>
<td>Indices</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>United States</td>
<td>S&amp;P 500</td>
<td>25.96%</td>
</tr>
<tr>
<td>Germany</td>
<td>DAX</td>
<td>18.36%</td>
</tr>
<tr>
<td>Japan</td>
<td>Nikkei 225</td>
<td>17.27%</td>
</tr>
<tr>
<td>Hong Kong</td>
<td>Hang Seng</td>
<td>19.71%</td>
</tr>
<tr>
<td>Spain</td>
<td>IBEX 35</td>
<td>12.31%</td>
</tr>
<tr>
<td>United Kingdom</td>
<td>FTSE 100</td>
<td>4.94%</td>
</tr>
<tr>
<td>Switzerland</td>
<td>Swiss Market</td>
<td>2.85%</td>
</tr>
<tr>
<td>France</td>
<td>CAC 40</td>
<td>-3.43%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<h3 class="wp-block-heading">Communication, Consumer Discretionary, And Technology Lead Gains In 2024</h3>
Tracking the exchange-traded funds that track the major sectors in the U.S. market, communication services emerged as the top sector for the year, followed by consumer discretionary and technology. The information technology sector has the highest weight of 31.3% in the S&amp;P 500, followed by financials a t13.9%.
BlackRock said that they see technology companies&#8217; earnings performing well in 2025. &#8220;We are overweight as the AI theme and earnings growth broaden. Valuations for AI beneficiaries are supported by tech companies delivering on earnings.&#8221;
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Cyclical Sectors</td>
<td>ETFs</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Communication Services</td>
<td>Communication Services Select SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>35.97%</td>
</tr>
<tr>
<td>Consumer Discretionary</td>
<td>Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>)</td>
<td>27.21%</td>
</tr>
<tr>
<td>Technology</td>
<td>Technology Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>27.01%</td>
</tr>
<tr>
<td>Financials</td>
<td>Invesco S&amp;P 500 Equal Weight Financial ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPF#NYSE">RSPF</a>)</td>
<td>23.48%</td>
</tr>
<tr>
<td>Industrials</td>
<td>Vanguard Industrials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIS#NYSE">VIS</a>)</td>
<td>17.80%</td>
</tr>
<tr>
<td>Real Estate</td>
<td>Real Estate Select Sector SPDR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>0.27%</td>
</tr>
<tr>
<td>Materials</td>
<td>Materials Select Sector SPDR Fund (ARC: XLB)</td>
<td>-0.37%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-1024x576.png" alt="" class="wp-image-705439" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24021831/Chart-2.1-cyclical-sectors.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
See Also: <a href="https://www.benzinga.com/markets/equities/24/11/42383725/trump-administrations-deregulation-efforts-to-lift-energy-oil-and-gas-sectors-ai-frenzy-to-aid-faang-stocks-and-nvidia-says-fintech-insider">Trump&#8217;s Deregulation Efforts To Benefit Energy, Oil And Gas Sectors, While AI Frenzy Will Boost FAANG Stocks And Nvidia, Says Fintech Insider</a>
Among the defensive sectors, utilities emerged as a winner, whereas energy was an underperformer. Consumer staples, energy, and utilities take up 5.7%, 3.4%, and 2.5% weight, respectively in the S&amp;P 500 index.
As per Morgan Stanley, the energy sector faces a divided future. Trump's deregulation could benefit traditional energy, but the outlook for oil is uncertain due to potential oversupply and weak global demand, especially from China. In contrast, natural gas may see growth from strong European demand and increased domestic use for electrification and AI-powered data centers. The clean energy sector could face challenges, if Trump rollbacks Biden's 2022 Inflation Reduction Act tax credits. However, a full repeal seems unlikely due to the benefits for Republican states.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Defensive Sectors</td>
<td>ETFs</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Utilities</td>
<td>Vanguard Utilities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VPU#NYSE">VPU</a>)</td>
<td>18.23%</td>
</tr>
<tr>
<td>Consumer Staples</td>
<td>Vanguard Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>)</td>
<td>10.04%</td>
</tr>
<tr>
<td>Healthcare</td>
<td>Vanguard Health Care ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VHT#NYSE">VHT</a>)</td>
<td>0.63%</td>
</tr>
<tr>
<td>Energy</td>
<td>The Energy Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>-0.96%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-1024x576.png" alt="" class="wp-image-705442" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022041/Chart-2.2-defensive-sectors.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
<h3 class="wp-block-heading">Top S&amp;P 500 Performers In 2024</h3>
Palantir was the top performer within the S&amp;P 500 index this year, as it zoomed 386.67% year-to-date, as of Dec. 23 close. Vistra and Nvidia followed Palantir to advance 269.82% and 189.95% in the same period.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>S&amp;P 500 Stocks</td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>)</td>
<td>386.67%</td>
</tr>
<tr>
<td>Vistra Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>)</td>
<td>269.82%</td>
</tr>
<tr>
<td>NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>189.95%</td>
</tr>
<tr>
<td>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>)</td>
<td>162.80%</td>
</tr>
<tr>
<td>Axon Enterprise Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>)</td>
<td>148.04%</td>
</tr>
<tr>
<td>United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>)</td>
<td>144.30%</td>
</tr>
<tr>
<td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td>
<td>114.07%</td>
</tr>
<tr>
<td>Texas Pacific Land Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>)</td>
<td>113.03%</td>
</tr>
<tr>
<td>Targa Resources Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRGP#NYSE">TRGP</a>)</td>
<td>106.40%</td>
</tr>
<tr>
<td>Howmet Aerospace Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HWM#NYSE">HWM</a>)</td>
<td>105.73%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">(As Of Dec. 23 Close)</figcaption></figure>
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-1024x576.png" alt="" class="wp-image-705446" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022228/Chart-3-top-performers-of-SPY.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
<h3 class="wp-block-heading">U.S. Dollar Surges Over 6% In 2024</h3>
The Dollar index was up 6.72% year-to-date with a 52-week range of 100.1570 to 108.5410 per unit. If the Greenback can hold on to these gains, the currency would leave behind the second-best year since 2015.
The UDS&#8217;s demand has been rising due to the &#8220;Uncertainties arising from expected Trump's policies and hawkish comments from the Fed towards rate cycle,&#8221; said Kunal Sodhani, vice president of the global trading center at Shinhan Bank.
According to Franklin Templeton, &#8220;The Fed easing cycle will be a dominant factor for the USD. The two main comparisons we draw against the Fed cyclically, interest-rate-wise, are emerging markets, and Japan.&#8221;
WisdomTree Bloomberg US Dollar Bullish Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USDU#NYSE">USDU</a>) was up 13.24% on a year-to-date basis, as of Dec. 23 close, where as Invesco DB US Dollar Index Bullish Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) advanced by 7.21% in the same period.
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-1024x576.png" alt="" class="wp-image-705448" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/24022447/Chart-4-Dollar-ETFs.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read Next
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<li><a href="https://www.benzinga.com/24/12/42642834/market-breadth-turns-positive-after-a-rare-14-day-negative-streak-history-suggests-gains-ahead">Market Breadth Rebounds As Risk Appetite Makes A Comeback: This Analyst Predicts Gains Ahead After S&amp;P 500&#8217;s Record Negative Streak</a></li>
</ul>
Photo courtesy: Shutterstock

Analyst Color

AVGO

AXON

SPDR Dow Jones Industrial Average ETF Trust

NVDA

Fidelity NASDAQmposite Index Fund ETF-Tracking NASDAQmposite Index

ONEQ

PLTR

RSPF

TRGP

USDU

PowerShares DB US Dollar Index Bullish Fund

XLRE

S&P 500 Hits 57 All-Time Highs In Record-Breaking 2024: Magnificent 7 Drive 30% Of Nasdaq's Surge

Launched on 05/08/2007, the First Trust Utilities AlphaDEX ETF (ARCA:FXU) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by First Trust Advisors. It has amassed assets over $256.06 million, making it one of the average sized ETFs attempting to match the performance of the Utilities - Broad segment of the equity market. FXU seeks to match the performance of the StrataQuant Utilities Index before fees and expenses.
The StrataQuant Utilities Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology.
Costs
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.64%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 2.65%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Utilities sector--about 96.50% of the portfolio.
Looking at individual holdings, Vistra Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vst#NYSE">VST</a>) accounts for about 4.91% of total assets, followed by National Fuel Gas Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nfg#NYSE">NFG</a>) and Oge Energy Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/oge#NYSE">OGE</a>).
The top 10 holdings account for about 40.31% of total assets under management.
Performance and Risk
The ETF return is roughly 9.28% so far this year and is up about 7.99% in the last one year (as of 07/15/2024). In that past 52-week period, it has traded between $27.35 and $35.11.
The ETF has a beta of 0.67 and standard deviation of 17.52% for the trailing three-year period, making it a medium risk choice in the space. With about 41 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust Utilities AlphaDEX ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. FXU, then, is not the best option for investors seeking exposure to the Utilities/Infrastructure ETFs segment of the market. However, there are better ETFs in the space to consider.
Vanguard Utilities ETF (ARCA:VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (ARCA:XLU) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $5.74 billion in assets, Utilities Select Sector SPDR ETF has $14.63 billion. VPU has an expense ratio of 0.10% and XLU charges 0.09%.
<a href="https://www.zacks.com/stock/news/2301337/should-you-invest-in-the-first-trust-utilities-alphadex-etf-fxu?cid=CS-BENZ-FT-sector_etf-2301337">To read this article on Zacks.com click here.</a>

Analyst Ratings

Should You Invest in the First Trust Utilities AlphaDEX ETF?

If you&#39;re interested in broad exposure to the Utilities - Broad segment of the equity market, look no further than the Invesco S&amp;P 500 Equal Weight Utilities ETF (ARCA:RSPU), a passively managed exchange traded fund launched on 11/01/2006.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Utilities - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $266.75 million, making it one of the average sized ETFs attempting to match the performance of the Utilities - Broad segment of the equity market. RSPU seeks to match the performance of the SP 500 EQUAL WEIGHT TELECM-UTILITY INDEX before fees and expenses.
The S&amp;P 500 Equal Weight Telecommunication Services &amp; Utilities Index equally weights stocks found in the utilities and telecommunication services sectors of the S&amp;P 500 Index.
Costs
When considering an ETF&#39;s total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.79%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund&#39;s holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Utilities sector--about 100% of the portfolio.
Looking at individual holdings, NRG Energy Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nrg#NYSE">NRG</a>) accounts for about 4% of total assets, followed by Constellation Energy Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ceg#NASDAQ">CEG</a>)&nbsp;and NextEra Energy Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nee#NYSE">NEE</a>).
The top 10 holdings account for about 35.48% of total assets under management.
Performance and Risk
So far this year, RSPU return is roughly 7.80%, and is up about 6.02% in the last one year (as of 07/08/2024). During this past 52-week period, the fund has traded between $48.19 and $61.82.
The ETF has a beta of 0.62 and standard deviation of 17.67% for the trailing three-year period. With about 33 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco S&amp;P 500 Equal Weight Utilities ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RSPU is a sufficient option for those seeking exposure to the Utilities/Infrastructure ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Utilities ETF (ARCA:VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (ARCA:XLU) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $5.49 billion in assets, Utilities Select Sector SPDR ETF has $13.91 billion. VPU has an expense ratio of 0.10% and XLU charges 0.09%.
<a href="https://www.zacks.com/stock/news/2297702/should-you-invest-in-the-invesco-s-p-500-equal-weight-utilities-etf-rspu?cid=CS-BENZ-FT-sector_etf-2297702">To read this article on Zacks.com click here.</a>

Invesco S&P 500 Equal Weight Utilities ETF

RSPU

Should You Invest in the Invesco S&P 500 Equal Weight Utilities ETF?

As the three major bourses are hovering near record highs, investors are rotating to areas like utility and the small-caps, which are cheap and undervalued. These zones have outperformed in May. 
The Utilities Select Sector SPDR Fund emerged as the top performer among the 11 SPDR ETFs tracking the S&amp;P 500 sectors. It rose nearly 9% last month, logging its largest monthly gain since March 2022, according to FactSet data. Meanwhile, small-cap stocks, as tracked by the Russell 2000 Index, surpassed the S&amp;P 500 and the Dow Jones with a 4.9% monthly gain. It was the small-cap&#39;s best month since February. 
Investors seeking to tap these hottest zones of the stock market could consider ETFs in these spaces. While there is a long list, we have highlighted the five most popular options from these zones. These include Utilities Select Sector SPDR Fund (ARCA:XLU), Vanguard Utilities ETF (ARCA:VPU), iShares Core S&amp;P Small-Cap ETF (ARCA:IJR), iShares Russell 2000 ETF (ARCA:IWM), and Vanguard Small-Cap ETF (ARCA:VB). 
Here, we have cited the reasons for their strong performance. The trend is likely to continue in the weeks ahead.
<h3>Utility</h3>
The utility sector, which tends to outperform when the economy is in a downturn, is making the most of the current volatility and uncertainty triggered by the timing of the Fed rate cuts, slowing economy and geopolitical tension. Being a low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or safe haven amid economic or political turmoil. 
Additionally, rising demand for electricity driven by artificial intelligence chips and software has made the traditional defensive sector of the market most appealing.
<h3>Small-Caps</h3>
Small-cap stocks are also considered safer and better plays if political issues or economic turmoil creep into the picture, as the pint-sized stocks generate most of their revenues from the domestic market. The latest survey from the National Federation of Independent Business revealed that small business optimism rebounded 1.2 points from the lowest level since December 2012 to 89.7 in April. 
Small-cap stocks seem attractively valued. According to the recent analysis by the firm&#39;s senior US market strategist, Dave Sekera, &quot;small-cap stocks trade at an 18% discount to fair value, making them the cheapest US asset class across the Morningstar Style Box.&quot; 
Further, the artificial intelligence craze holds the promise of ushering in fresh opportunities for growth. While mega-cap companies are leading the AI world, many small-cap stocks having huge potential in this field remain untapped. According to a new report by Grand View Research, the global artificial intelligence market is expected to witness a CAGR (2024-2030) of 36.6% to reach $811.75 billion by 2030.
<h3>ETFs in Focus</h3>
Utilities Select Sector SPDR 
With an AUM of $14 billion, Utilities Select Sector SPDR seeks to provide exposure to companies from the electric utility, water utility, multi-utility, independent power and renewable electricity producers, and gas utility industries. It follows the Utilities Select Sector Index, holding 31 stocks in its basket. Electric utilities take the top spot among sectors at 65.9%, closely followed by multi utilities (25.9%). Utilities Select Sector SPDR charges 9 bps of annual fees and sees a heavy volume of 13.5 million shares, on average. It has a Zacks ETF Rank #3 (Hold). 
Vanguard Utilities ETF 
Vanguard Utilities ETF follows the MSCI US Investable Market Utilities 25/50 Index, holding 65 securities in its basket, with none accounting for more than 12.4% share. About 62.4% of the portfolio is allocated to electric utilities, closely followed by multi utilities (25.3%). Vanguard Utilities ETF charges 10 bps in annual fees and sees a good volume of around 171,000 shares on average. It has AUM of $5.7 billion and a Zacks ETF Rank #3. 
iShares Core S&amp;P Small-Cap ETF 
iShares Core S&amp;P Small-Cap ETF offers exposure to U.S. small-cap stocks and follows the S&amp;P SmallCap 600 Index. It holds 681 stocks in its basket, with none accounting for more than 2% of the assets. Financials, industrials, consumer discretionary, information technology and healthcare are the top five sectors with double-digit exposure each. iShares Core S&amp;P Small-Cap ETF has AUM of $78.5 billion and trades in an average daily volume of 3 million shares. The product charges investors 6 bps in annual fees. 
iShares Russell 2000 ETF 
iShares Russell 2000 ETF is the largest and most popular ETF in the small-cap space, with an AUM of $59 billion and an average daily volume of 27 million shares. iShares Russell 2000 ETF holds well-diversified 1,937 stocks in its basket and has key holdings in industrials, financials, information technology, healthcare and consumer discretionary. iShares Russell 2000 ETF charges 19 bps in annual fees and has a Zacks ETF Rank #2 (Buy). 
Vanguard Small-Cap ETF 
Vanguard Small-Cap ETF follows the CRSP US Small Cap Index and holds a basket of 1,417 stocks, with none holding more than 0.5% of assets. Vanguard Small-Cap ETF is widely spread across various sectors, with industrials, consumer discretionary, financials, information technology and healthcare being the top five. Vanguard Small-Cap ETF has AUM of $55.3 billion and trades in a solid average daily volume of about 562,000 shares. VB charges 5 bps in fees per year from investors.
<a href="https://www.zacks.com/stock/news/2283438/leverage-the-power-of-utilities-small-caps-with-these-etfs?cid=CS-BENZ-FT-etf_news_and_commentary-2283438">To read this article on Zacks.com click here.</a>

Leverage the Power of Utilities & Small-Caps With These ETFs

As <a href="https://www.benzinga.com/topic/2024-presidential-election">the 2024 U.S. Presidential election</a> approaches, the energy sector stands at a crossroads. 
Potential shifts in policy could significantly impact both traditional and <a href="https://www.benzinga.com/topic/clean-energy">clean energy markets</a>.
According to <a href="https://markets.jpmorgan.com/research/email/scx/qijkd11j/LK2zzrWZCAlD7mRxHsWnxA/GPS-4675360-0">insights</a> from JPMorgan's Strategic Research team, the outcome of the election between incumbent President Joe Biden and Ex-President Donald Trump could lead to varying scenarios. 
Each of these scenarios has distinct implications for investors and companies in the sector.
<h3 class="wp-block-heading">1. Biden Presidency, Split Congress</h3>
<ul>
<li>Clean Energy: This scenario is seen as the lowest risk for the clean energy sector. A divided Congress would likely maintain the status quo, making it difficult to roll back or repeal the <a href="https://home.treasury.gov/news/press-releases/jy2376">Inflation Reduction Act</a> (IRA) incentives. This stability is favorable for companies relying on federal clean energy incentives. Under Biden, hundreds of billions of dollars were put toward <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/04/04/biden-harris-administration-announces-historic-20-billion-in-awards-to-expand-access-to-clean-energy-and-climate-solutions-and-lower-energy-costs-for-communities-across-the-nation/">incentives</a> for green energy.</li>
<li>Traditional Energy: The regulatory environment under Biden is expected to remain challenging, but stable. Companies have adapted to tighter regulations, which have not hindered record oil and gas output in the U.S. During Biden&#8217;s presidency, the U.S. <a href="https://www.eia.gov/todayinenergy/detail.php?id=61545">set a record</a> for crude oil production. In 2023, it outpaced what all other countries — including Saudi Arabia — have ever produced in one year. </li>
</ul>
<h3 class="wp-block-heading">2. Trump Presidency, Split Congress</h3>
<ul>
<li>Clean Energy: This scenario raises the risk profile slightly. A split Congress would make it challenging to repeal IRA incentives; Trump — who <a href="https://www.nytimes.com/interactive/2020/climate/trump-environment-rollbacks-list.html">rolled</a> back more than 100 pro-environmental policies during his administration — will likely slow their implementation by reducing funding to relevant departments. He may also impact grant and loan spending. </li>
<li>Traditional Energy: Trump — who <a href="https://apnews.com/article/trump-hannity-dictator-authoritarian-presidential-election-f27e7e9d7c13fabbe3ae7dd7f1235c72">vowed</a> to be a dictator on &#8220;day one&#8221; so he can &#8220;drill, drill, drill" — could ease regulations, potentially increase access to resources on federal lands and reduce regulations, thereby supporting more exports.</li>
</ul>
<h3 class="wp-block-heading">3. Trump Presidency, Republican Congress</h3>
<ul>
<li>Clean Energy: This is considered the highest-risk scenario for clean energy. A Republican majority could partially repeal the IRA through a reconciliation bill, particularly targeting unspent funds. However, full repeal is unlikely due to significant investments in Republican states.</li>
<li>Traditional Energy: The sector could benefit from reduced regulations and increased resource access. Policies encouraging more energy exports, such as LNG, could positively impact the long-term gas market.</li>
</ul>
JPMorgan did not explore the scenario of a Biden presidency and Democrat Congress.
Also Read: <a href="https://www.benzinga.com/news/24/05/39012457/enphase-stock-surges-amid-bidens-tariff-boost-on-chinese-solar-imports">Enphase Stock Surges Amid Biden&#8217;s Tariff Boost On Chinese Solar Imports</a>
<h3 class="wp-block-heading">Clean Energy Stocks</h3>
<ul>
<li>Valuation and Sentiment: Clean energy stocks, including those in electric vehicle (EV) charging and green hydrogen, have lagged due to weak fundamentals. Election outcomes could exacerbate this trend, especially under a Republican sweep.</li>
<li>Loan Programs: A Republican sweep might curtail the DOE Loan Programs Office's authority, negatively impacting companies seeking non-dilutive funding for capex-intensive projects.</li>
<li>Subsidies and Tariffs: Potential downsizing or repeal of subsidies for EVs and tightening of charging incentives are risks. However, protectionist measures like <a href="https://www.benzinga.com/markets/asia/24/05/38824198/biden-announces-massive-tariffs-on-chinese-imports-to-protect-us-industries-clean-energy-solar-stock">tariffs on Chinese imports</a> are likely to remain, regardless of the administration.</li>
</ul>
Investors in the iShares Global Clean Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICLN#NYSE">ICLN</a>), the First Trust NASDAQ Clean Edge Green Energy Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QCLN#NYSE">QCLN</a>) and the Invesco WilderHill Clean Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBW#NYSE">PBW</a>) must take heed of these observations.
<h3 class="wp-block-heading">Traditional Energy Stocks</h3>
<ul>
<li>Regulations: The Trump administration could ease regulations and increase resource access, but ongoing legal and political challenges could continue to <a href="https://www.benzinga.com/news/24/05/38997165/trumps-policies-for-money-transaction-with-big-oil-under-investigation-by-senate-democrats-cronyism">shape the regulatory landscape</a>.</li>
<li>Refiners: Refiners might benefit from the continuation of Trump-era corporate tax cuts. However, geopolitical tensions, such as those in the Middle East, could pose risks to crude supply and impact refiner margins.</li>
</ul>
Investors in the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), the Vanguard Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDE#NYSE">VDE</a>) and the Alerian MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMLP#NYSE">AMLP</a>) may want to adjust their positioning based on these observations.
<h3 class="wp-block-heading">Utility and Renewables </h3>
<ul>
<li>Regulated vs. Unregulated: Unregulated renewables are more sensitive to election outcomes, while regulated utilities are less affected. A Biden re-election could be a catalyst for renewables to regain ground lost in 2023.</li>
<li>IRA Resilience: Core utility and renewable energy provisions of the IRA are expected to be resilient, though a Trump victory could create uncertainty until policy clarity emerges.</li>
</ul>
See Also: <a href="https://www.benzinga.com/markets/esg/24/05/38759168/solar-is-leaving-wind-in-the-dust-as-world-renewable-energy-hits-new-high">Solar Is Leaving Wind In The Dust As Renewables Hit New High</a>
Utility sector investors such as those invested in the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>), the Global X US Infrastructure Development ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAVE#NYSE">PAVE</a>) or the Vanguard Utilities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VPU#NYSE">VPU</a>) must take note of such observation.
For those looking to get exposure to renewables, the ICLN, QCLN and PBW ETFs are popular capital market funds in the space.
<h3 class="wp-block-heading">Investment Considerations</h3>
Investors should monitor the evolving political landscape as the election approaches. The potential for policy shifts under different election scenarios underscores the importance of a diversified portfolio. 
As always, staying informed and agile in response to political developments will be key to navigating the energy sector&#8217;s challenges and opportunities in the run-up to the 2024 election.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/39082854/exclusive-will-trumps-possible-return-to-power-make-bitcoin-ethereum-go-boom-or-bus">EXCLUSIVE &#8211; Will Trump&#8217;s Possible Return To Power Make Bitcoin, Ethereum Go Boom Or Bust? Experts Weigh In On Crypto&#8217;s Regulatory Future</a>
Image: Shutterstock

Government

Regulations

Specialty ETFs

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AMLP

iShares S&P Global Clean Energy Index Fund

ICLN

PAVE

PowerShares Exchange Traded Fund Trust WilderHill Clean Energy Portfolio

First Trust NASDAQ Clean Edge Green Energy Index Fund

QCLN

What A Biden Or Trump Victory Might Mean For The Energy Sector

Duke Energy Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DUK#NYSE">DUK</a>) reported first quarter FY24 adjusted EPS&nbsp;of&nbsp;$1.44, up from&nbsp;$1.20&nbsp;a year ago, beating&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/n38664169/duke-energy-reports-first-quarter-2024-financial-results" rel="noreferrer noopener">the consensus of&nbsp;$1.38</a>.&nbsp;
Revenues of&nbsp;$7.67 billion, exceeding the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of&nbsp;$7.24 billion</a>.&nbsp;
Electric Utilities and Infrastructure's adjusted segment income rose to&nbsp;$1.02 billion&nbsp;from&nbsp;$791 million&nbsp;a year ago.&nbsp;Results reflect improved weather, volume growth, favorable rate case impacts&nbsp;along&nbsp;with&nbsp;growth&nbsp;from riders and&nbsp;other retail&nbsp;margin.
On the other hand, Gas Utilities and Infrastructure adjusted segment income fell to&nbsp;$284 million&nbsp;from&nbsp;$287 million&nbsp;a year ago due to higher interest expense and depreciation.
At the end of the quarter, operating cash flow stood at&nbsp;$2.47 billion, and cash and equivalents stood at&nbsp;$518 million.&nbsp;
FY24&nbsp;Outlook&nbsp;Reaffirmed: Duke Energy expects adjusted EPS of&nbsp;$5.85-$6.10&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">vs consensus of&nbsp;$5.97</a>.
The company also reaffirmed its long-term adjusted EPS growth of&nbsp;5%-7%&nbsp;through 2028 vs.&nbsp;<a target="_blank" href="https://www.benzinga.com//node/37016098" rel="noreferrer noopener">the 2024 midpoint of&nbsp;$5.98</a>.&nbsp;
Investors can gain exposure to the stock via&nbsp;SPDR Select Sector Fund &#8211; Utilities&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) and&nbsp;Vanguard Utilities ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VPU#NYSE">VPU</a>).
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com//node/37029869" rel="noreferrer noopener">Duke Energy Bows To Pressure, Reportedly To Phase Out CATL Batteries At Its Civilian Projects</a>
Price Action: DUK shares are up&nbsp;1.35%&nbsp;at&nbsp;$101.78&nbsp;at the last check Tuesday.

Duke Energy Powers Up: Beats On Q1 Earnings & Revenue, Reaffirms FY24 Outlook

Duke Energy Corporation&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DUK#NYSE">DUK</a>) Florida segment stated that it filed new base rates with the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38049016/duke-energy-florida-files-for-new-base-rates-announces-fuel-filing-to-reduce-rates-in-2024-expects" rel="noreferrer noopener">Florida Public Service Commission (FPSC)</a>.&nbsp;
Duke Energy Florida stated it would also reduce rates by filing a fuel mid-course adjustment and requesting approval of new cost-effective energy efficiency goals and programs to help customers in saving energy bills.
The company commented that the base rate aims to help it increase efficiency and reduce outages, which included investment in 14 new solar sites of 1,050 megawatts overall.
The expected impact of these requested base rate changes is projected to be an average annual increase of about 4% of the total bill from 2025-2027.&nbsp;
The rate impact for just the base rate increase is projected to be about $16.48 in 2025, $2.73 in 2026, and $4.93 in 2027 on a 1,000-kilowatt bill.&nbsp;
Duke Energy Florida anticipates total customer bills to decrease Y/Y in January 2025, even with the requested base rate hike.
This will be the second consecutive year decrease in residential customer rates by Duke Energy Florida. The 2025-2027 rate case filing is subject to FPSC approval.
Duke Energy Florida also disclosed it plan to file a fuel and capacity rate request due to declining natural gas costs, which is anticipated to lower customer bills by over $5, in addition to a $11.29 decrease that began in January 2024.
The company expects to file later this month, with the rate change would go into effect following the FPSC approving this request.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/02/37029869/duke-energy-bows-to-pressure-reportedly-to-phase-out-catl-batteries-at-its-civilian-projects" rel="noreferrer noopener">Duke Energy Bows To Pressure, Reportedly To Phase Out CATL Batteries At Its Civilian Projects</a>
Investors can gain exposure to the stock via&nbsp;SPDR Select Sector Fund &#8211; Utilities&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) and&nbsp;Vanguard Utilities ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VPU#NYSE">VPU</a>).
Price Action: DUK shares closed higher by 0.49% at $96.54 on Tuesday.

Duke Energy's Florida Makeover: New Rates, Solar Investments, And Energy Efficiency Goals

Staples (VDC) Down 0.4%

iShares Trust Dow Jones US Healthcare Sector Index Fund

Benzinga Pro Morning Price Check For Sector ETFs: Industrials (VIS) Up 0.1%, Energy (XLE) Flat, ​​​​​​​Tech (XLK) Flat, Financials (XLF) Flat, Retail ETF (XRT) Down 0.2%, Utilities (VPU) Down 0.2%, Healthcare (IYH) Down 0.2%

Healthcare (IYH) Down 0.9%

Benzinga Pro Mid-Day Price Check For Sector ETFs: Retail ETF (XRT) Up 0.9%, Industrials (VIS) Down 0.1%, Financials (XLF) Down 0.2%, ​​​​​​​Staples (VDC) Down 0.2%, Energy (XLE) Down 0.5%, Utilities (VPU) Down 0.5%, Tech (XLK) Down 0.6%,

Benzinga Pro Mid-Day Price Check For Sector ETFs: Retail ETF (XRT) Up 0.8%, Utilities (VPU) Up 0.1%, Staples (VDC) Up 0.1%, Industrials (VIS) Flat, Energy (XLE) Down 0.2%, Healthcare (IYH) Down 0.4%, Financials (XLF) Down 0.7%, Tech (XLK) Down 0.8%

Benzinga Pro Morning Price Check For Sector ETFs: Retail ETF (XRT) Up 1.7%, Industrials (VIS) Up 0.6%, Staples (VDC) Up 0.3%, Utilities (VPU) Up 0.1%, Energy (XLE) Down 0.1%%, Tech (XLK) Down 3%%, Healthcare (IYH) Down 0.5%

Benzinga Pro Mid-Day Price Check For Sector ETFs: Tech (XLK) Up 2.2%, Utilities (VPU) Up 1.5%, Staples (VDC) Up 1.1%, Industrials (VIS) Up 0.9%, Retail ETF (XRT) Up 0.9%, Energy (XLE) Up 0.5%, Healthcare (IYH) Up 0.3%, Financials (XLF) Down 0.1%

Financials (XLF) Down 0.8%

Benzinga Pro Morning Price Check For Sector ETFs: Tech (XLK) Up 1.5%, Utilities (VPU) Up 0.7%, Industrials (VIS) Up 0.6%, Staples (VDC) Up 0.6%, Retail ETF (XRT) Up 0.5%, Energy (XLE) Down 0.1%%, ​​​​​​​Healthcare (IYH) Down 0.1%

Benzinga Pro Morning Price Check For Sector ETFs:Utilities (VPU) Up 0.1%, Energy (XLE) Up 0.1%, Tech (XLK) Down 0.3%, Financials (XLF) Down 0.5%, Staples (VDC) Down 0.6%, Healthcare (IYH) Down 0.6%, Industrials (VIS) Down 0.7%, Retail ETF (XRT) Down 0.9%

Benzinga Pro Morning  Price Check For Sector ETFs: Industrials (VIS) Up 0.6%, Financials (XLF) Up 0.6%, Energy (XLE) Up 0.5%, ​​​​​​​Tech (XLK) Up 0.4%, Healthcare (IYH) Up 0.3%, Retail ETF (XRT) Up 0.3%, Staples (VDC) Flat

Benzinga Pro Morning  Price Check For Sector ETFs: Financials (XLF) Up 0.9%, Energy (XLE) Up 0.8%, Tech (XLK) Up 0.5%, Retail ETF (XRT) Up 0.4%, Staples (VDC) Up 0.3%, Industrials (VIS) Up 0.2%, Healthcare (IYH) Flat, Utilities (VPU) Down 0.1%

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