FUTY vs RSPU

FUTYAFidelity MSCI Utilities Index ETF

RSPUCInvesco S&P 500 Equal Weight Utilities ETF

In short

FUTY The whole US power grid in one ticker. Fidelity tracks an all-cap MSCI utilities index, so mid- and small-cap operators ride along with the mega-cap names, at 0.08% a year.

RSPU Utilities without one giant hogging the wheel. RSPU equal-weights the S&P 500's utility stocks, so a mid-sized water company carries about the same load as the biggest power name. It has been running this way since 2006.

Stated mandate

FUTY The fund seeks to track, before fees and expenses, the performance of the MSCI USA IMI Utilities Index.

RSPU The fund seeks to track an index that equally weights the common stocks of S&P 500 companies classified in the utilities sector.

Why people hold it

• FUTY Costs 0.08% a year against a 0.37% median for broad utilities funds. That ties XLU on price and edges out VPU.
• The MSCI USA IMI Utilities Index reaches past the S&P 500 giants into mid- and small-cap utilities, roughly 70 names of power, gas and water.fidelity.com
• Plain index replication, running since 2013, with tracking that has stayed tight to the benchmark. No swaps, no options overlay, no clever wrapper.fidelity.com
• A multi-billion-dollar fund from a major issuer that pays out quarterly, and one of the stronger builds in the utilities group.

• RSPU Equal weighting is the whole point: roughly 30 S&P 500 utilities each get about the same slice, so no single mega-cap utility dominates the portfolio.invesco.com
• It does what the label says: S&P 500 utilities, index-tracked, no derivatives or off-menu holdings, and it has stayed close to its benchmark.
• A long track record for a niche idea. Launched in 2006, it pays distributions quarterly.

Worth knowing

• FUTY This is one sector, about 70 stocks. When utilities are out of favor, there is nowhere in the portfolio to hide.
• Moderately traded rather than the category's busiest tape, so limit orders are the sane habit on larger tickets.
• The all-cap reach cuts both ways: smaller utilities in the mix behave differently from the household-name giants that dominate S&P 500-only rivals.

• RSPU The equal-weight build carries a price: 0.40% a year, versus the cheapest utilities trackers in the group (XLU, FUTY, VPU), which charge well under a tenth of a percent.
• It trades thinly next to the household-name utilities funds, which can mean wider bid-ask spreads.
• One sector, about 30 names, concentrated by design. Flat weighting also leans harder on smaller utilities than a size-weighted fund does.

Full FUTY profile⁠

Full RSPU profile⁠