

Virtus Reaves Utilities ETF (UTES) offers superior total return and resilience in rising rate environments compared to Reaves Utility Income Fund (UTG). UTES's lower expense ratio (0.49%) and pure equity focus outperform UTG's leveraged, higher-cost structure in both up and down markets. AI-driven power demand and long-term contracts with data centers favor UTES's concentrated portfolio of power producers for forward growth.

The Virtus Reaves Utilities ETF (UTES) is initiated with a buy rating, capitalizing on utilities' transformation from defensive to growth amid AI-driven demand. UTES targets utilities poised for outsized earnings and revenue growth, especially those with nuclear and clean energy exposure serving data centers and tech giants. Valuation reset, with sector forward P/E at 16x versus a 5-year average of 18x, offers an attractive entry point for long-term investors.

Brazilian equities, tanker shipping, utilities, cybersecurity and cloud computing ETFs led last week's winners. Here's what fueled their gains.

Virtus Reaves Utilities ETF (NYSEARCA:UTES - Get Free Report) was the recipient of a large increase in short interest in the month of September. As of September 15th, there was short interest totaling 134,030 shares, an increase of 211.9% from the August 31st total of 42,968 shares. Currently, 0.8% of the company's stock are short

I prioritize dividend growth investing, building a core portfolio of select ETFs and high-quality individual stocks for stability and passive income. My approach favors continuity and flexibility, avoiding the risks of abrupt transitions from growth to dividend stocks near retirement. The portfolio centers on seven dividend growth ETFs, balancing moderate yield with robust growth potential and sector diversification.

Water utilities are undervalued, while electricity and multi-utilities are moderately overvalued. Virtus Reaves Utilities ETF (UTES) has delivered higher long-term returns than XLU. However, its weaker fundamentals, recent underperformance, and concentration are notable risks.

The Virtus Reaves Utilities ETF (NYSEARCA:UTES) is one of the only actively managed funds in the utilities category, and its 0.49% expense ratio sits near the top end of what utility investors will pay.

Utility stocks returned to focus in 2026 as artificial intelligence data center demand strained the power grid.