The article compares three popular utility ETFs—XLU, VPU, and FUTY—that provide defensive income exposure through regulated electric, gas, and water companies. Utilities act like bond proxies with steady dividends and less sensitivity to market swings, making them attractive during volatility spikes like in March 2026. XLU offers the most liquidity and institutional backing but is more concentrated; VPU provides broader diversification with slightly less liquidity; FUTY is a low-cost option for Fidelity investors with commission-free trades but smaller scale. Investors should allocate 5-10% of their income portfolio to utilities for stability amid rising Treasury yields and market uncertainty.
