Fidelity MSCI Utilities Index ETF
In my review of the funds held in my wife’s accounts, I decided it was time to lock in the profits for the utilities ETF she had in two of her accounts. One of our granddaughters also had some shares of FUTY, so I sold all of the shares Cindie owned and all of our granddaughter’s UTMA account shares as well. I still like most of the investments in FUTY, and own several of the utilities that make up FUTY. However, utilities are not a growth investment. Furthermore, dividend growth is generally slower for most utilities as well. There are notable exceptions, but not enough to warrant holding and ETF like FUTY.
As soon as I sold the FUTY shares in the UTMA account, I purchased more shares of VYM to replace them. The diversification and dividend characteristics are better. This also simplifies my management of these accounts.
Other Sector Funds
Even though FUTY got the boot, the grandchildren will continue to own sector ETFs. They have shares of FTEC (technology) and FHLC (healthcare). Both have done very well.
“The Uniform Transfers to Minors Act (UTMA) allows a minor to receive gifts—such as money, patents, royalties, real estate, and fine art—without the aid of a guardian or trustee. A UTMA account allows the gift giver or an appointed custodian to manage the minor’s account until the latter is of age.” – Investopedia
ADC and SVM
I also added to my REIT holding with the ticker symbol ADC. This is a long-term holding. In addition, I rebought SVM. During the silver euphoria I sold my shares at a profit and then watched as they dropped back to a rational valuation. When they reached $6.20 per share, I bought 100 shares. Silver, as I would hope my reader would realize, is a higher risk investment.