What is the fee difference between FUTY and VPU?

FUTY charges 0.08% a year and VPU charges 0.09%. On $10,000 invested that is about $8 a year for FUTY and $9 for VPU, a difference of about $1. Both are very low-cost sector funds, and with the same underlying index the fee gap is one of the few measurable differences between them.

What index does each fund track?

Both track the MSCI USA IMI Utilities 25/50 index, which covers US utility companies of all sizes with a cap that keeps any single holding below 25% and limits the combined weight of large positions. FUTY currently holds 68 stocks and VPU holds 75; the small gap reflects timing and rounding of index changes rather than a different strategy.

How much do the holdings of FUTY and VPU overlap?

All ten of the largest holdings are the same: NextEra Energy, Southern Company, Duke Energy, Constellation Energy, American Electric Power, Dominion, Sempra, Vistra, Entergy and Xcel. Weights are nearly identical too; NextEra is 11.7% in both, and Constellation is 5.7% in FUTY and 5.9% in VPU. In practice the two portfolios are almost interchangeable.

Which fund pays more in dividends?

The yields are almost the same: VPU yields 2.91% and FUTY yields 2.90%. Both hold the same regulated utilities, which are known for steady dividends. Utilities as a sector pay higher yields than the broad market, which is one reason investors use these funds for income.

Which fund suits which investment goal?

Both funds do the same job: give income-oriented or defensive exposure to US utilities. FUTY suits investors who want the marginally lower fee. VPU suits investors who prefer the larger fund with a track record back to 2004, or who already hold other Vanguard funds and want to stay with one provider.

How do FUTY and VPU compare on size and liquidity?

VPU is the larger fund with about $8 billion in net assets, compared with about $2.25 billion for FUTY. Both trade on US exchanges and are large enough for retail investors to buy and sell easily, but VPU's greater size usually means higher volume and slightly tighter bid-ask spreads.

How concentrated is each fund?

Both are concentrated in the same way. NextEra Energy is about 11.7% of each fund, and the top ten holdings make up more than half of assets in both. With 68 and 75 holdings, they cover the utilities sector but remain single-sector funds, so they carry the sector's interest-rate and regulatory risks in full.

Are there tax differences between FUTY and VPU?

Both are US-listed ETFs paying similar yields of about 2.9%, so non-US investors face broadly the same US withholding tax on dividends at a treaty-dependent rate. Because utilities pay relatively high dividends, a larger share of the return from either fund is taxable income. Rules vary by country and account type.

Can I hold both FUTY and VPU?

You can, but there is little reason to. Both track the same index and hold the same top ten stocks at almost the same weights, so owning both simply duplicates utilities exposure. Investors normally pick one, often on fee, size or provider preference, and size the position as a single sector allocation.

FUTY vs VPU

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

FUTY and VPU both track the MSCI USA IMI Utilities 25/50 index and share the same ten largest holdings, led by NextEra Energy at 11.7%. FUTY charges 0.08% a year with 68 holdings and $2.25 billion in assets; VPU charges 0.09% with 75 holdings and $8 billion, and both yield about 2.9%. FUTY suits cost-focused buyers; VPU suits those who want the larger, older fund. Educational content, not financial advice.

FUTY and VPU both track the MSCI USA IMI Utilities 25/50 index and share the same ten largest holdings, led by NextEra Energy at 11.7%. FUTY charges 0.08% a year with 68 holdings and $2.25 billion in ...

Fund Snapshot

Key Fund Metrics

FUTY

Metric

VPU

0.08%

Expense Ratio

0.09%

2.90%

Dividend Yield

2.91%

$2.25B

Net Assets

$8.02B

68

Holdings

75

Oct 21, 2013

Inception Date

Jan 26, 2004

MSCI USA IMI Utilities 25/50 Index

Index Tracked

MSCI US IMI 25/50 Utilities

Utilities

Fund Category

Utilities

FUTY costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FUTY	VPU
NEENextEra Energy, Inc.	11.72%	11.73%
SOThe Southern Company	6.76%	6.78%
DUKDuke Energy Corporation	6.39%	6.39%
CEGConstellation Energy Corporation	5.67%	5.86%
AEPAmerican Electric Power Company, Inc.	4.57%	4.55%
DDominion Energy, Inc.	3.91%	3.97%
SRESempra	3.71%	3.65%
VSTVistra Corp.	3.34%	3.16%
ETREntergy Corporation	3.33%	3.39%
XELXcel Energy Inc.	3.18%	3.23%

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Investment Analysis

FUTY

Pros

Expense ratio of 0.08% is marginally lower than VPU's 0.09%
Same top ten holdings as VPU, led by NextEra, Southern and Duke Energy
Dividend yield of 2.90% from a portfolio of regulated US utilities

Considerations

Smaller fund at $2.25 billion compared with $8 billion for VPU
Fewer holdings at 68 versus 75 for VPU
Shorter track record than VPU, having launched in October 2013

VPU

Pros

Larger fund at $8 billion in net assets, trading since January 2004
Slightly higher dividend yield of 2.91% versus 2.90% for FUTY
75 holdings give marginally broader coverage of the utilities sector

Considerations

Expense ratio of 0.09% is fractionally above FUTY's 0.08%
NextEra Energy alone is 11.7% of the fund, a heavy single-stock weight
Single-sector fund, so it offers no diversification beyond utilities

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About FUTY and VPU

FUTY (FUTY)

Fidelity MSCI Utilities ETF (FUTY) is an exchange-traded fund designed to provide investors with exposure to large- and mid-cap companies in the utilities sector by tracking an MSCI utilities index. It offers a single-ticket way to gain diversified exposure to electricity, gas, water and multi-utility companies rather than owning individual stocks. Investors should note it is an equity-sector ETF, so performance typically correlates with utilities industry cycles, interest-rate moves and regulatory developments. The fund may pay dividends derived from underlying holdings, but yields and distributions can vary. Costs such as the expense ratio and trading spreads affect returns — check the fund’s prospectus for up-to-date fees. Liquidity and tracking error are additional considerations: ETFs trade like stocks and can deviate from their benchmark in the short term. This summary is for general education only and not investment advice; investors should consider their goals, risk tolerance and consult a financial professional if needed.

VPU (VPU)

VPU is Vanguard's Utilities ETF, designed to provide investors with exposure to companies in the utilities sector — principally electricity, gas, water and related services. The fund aims to track a broad utilities index and is typically heavier on established, dividend-paying firms that offer relatively stable cash flows compared with cyclical sectors. Investors often use VPU for income and defensive sector exposure within a diversified portfolio, though it is not immune to market moves. Key sensitivities include interest-rate changes (which can weigh on utility valuations), regulatory developments and commodity or fuel-cost pressures. Costs, yield and tracking error vary over time, and market capitalisation or holdings may change as the index and fund rebalance. This is general educational information and not personal advice; suitability depends on your goals, horizon and risk tolerance. Past performance is not a guide to future returns and capital is at risk.

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FUTY vs VPU

Fund Snapshot