Virtus Reaves Utilities ETF Surges 34% With 1.34% Yield on AI Demand
The Virtus Reaves Utilities ETF jumped 34% last year, carries a 1.34% dividend yield and a 0.49% expense ratio, and uses active management to target AI-driven power demand, EVs and reshoring. Data center power use may exceed 1,000 TWh by 2030, driving utilities earnings growth of 23.1% in Q3 2025.
1. UTES Performance and Strategy
Virtus Reaves Utilities ETF delivered a 34% one-year gain and provides a 1.34% dividend yield against a 0.49% expense ratio. Its active management approach emphasizes stocks positioned to benefit from an AI-driven power demand supercycle, electric vehicle adoption and domestic manufacturing reshoring.
2. Data Center Power Demand Outlook
Global data center electricity consumption is projected to rise from 460 TWh in 2024 to over 1,000 TWh by 2030, accounting for roughly 10% of U.S. power use. This surge in demand underscores the need for upgraded grid infrastructure and higher utility sector capital spending.
3. Utilities Sector Earnings Growth
The utilities sector recorded earnings growth of 23.1% in Q3 2025, making it the third fastest-growing sector. Elevated power consumption trends and infrastructure investments have created a supportive backdrop for utility-focused ETFs, which remain undervalued relative to growth potential.