Core Insights - Americans' energy bills have surged by 13% since January 2025, which could present investment opportunities in the utilities sector despite the overall market challenges [2][7] - The utilities sector has experienced a 3% loss over the past month, marking the worst performance among the 11 sectors in the S&P 500, but may benefit from long-term tailwinds as electric bills rise [3] - The Trump administration's focus on reviving the fossil fuel industry has led to a significant reduction in renewable energy project permits, resulting in the delay or cancellation of nearly 25,000 megawatts of planned electric power production [4] Utilities Sector Performance - The utilities sector is currently facing challenges but is expected to gain from elevated electric rates as demand for electricity increases, particularly due to the rise of AI data centers [6] - Natural gas prices have increased by 98% since the Trump administration took office, which poses a challenge as natural gas accounts for over 43% of U.S. electricity generation [5][7] Investment Opportunities - The First Trust Utilities AlphaDEX Fund (NYSEARCA: FXU) is highlighted as a potential investment vehicle for those looking to gain exposure to the utilities sector, which is expected to benefit from the rising energy costs [2][7]
This ETF Will Benefit From Americans' Higher Energy Bills
Yahoo Finance·2025-12-25 14:58