By Avinash D’Souza
In a world of market volatility and economic uncertainty, one sector continues to keep the lights on—literally and financially.
Utilities have long been a cornerstone for investors seeking stability, steady income, and defensive positioning. But with rising demand, technological transformation, policy shifts, and the global energy transition, this once-sleepy sector is becoming a surprising engine of long-term growth.
The Harvest Equal Weight Global Utilities Income ETF (HUTL:TSX) can be a strategic addition to your investment strategy. This ETF provides exposure to essential services and the long-term trends shaping our energy transition—delivering consistent cash flow today, while positioning for tomorrow.
Defensive Core with Growth Catalysts
Essential Services & Stable Cash Flow
Utilities offer critical services—electricity, gas, water, telecom—regardless of economic cycles. This makes the sector a reliable source of stable revenues and a defensive allocation during uncertain markets.
HUTL holds companies across Utilities, Communication Services, and Energy Infrastructure—broadening exposure to essential connectivity and energy networks. Whether the economy is strong or struggling, these services are always in demand, and HUTL provides consistent monthly cashflows backed by a flexible covered call strategy.
Massive Demand Growth
Electricity demand is soaring, especially from data centres and the broader electrification push. Data centres consumed ~1.5% of global electricity in 2024 and that could double by 2030. Goldman Sachs estimates data centre power demand will grow by 165% by 2030.
Global Data Energy Use Projections
Source: Berkeley Lab, 2024 United States Data Center Energy Usage Report. December 2024.
In North America, data centre loads have tripled over the past decade and could double again by 2028, which directly positioned HUTL to benefit, owing to its exposure to securities like:
- Dominion Energy – High exposure to Virginia’s booming data centre region
- FirstEnergy Corp – Serving high-growth regions
- Eversource Energy – Northeast-based utility with growing demand
- Evergy Inc – Midwest utility seeing industrial expansion
Further, the growth in demand for more data centres represents a paradigm shift in infrastructure planning, creating tailwinds for HUTL’s portfolio.
Energy Transition & Infrastructure Spending
Clean Energy Investment Boom
The global energy landscape is undergoing historic change. Clean energy investment is forecast to hit $2.2 trillion in 2025, more than double fossil fuel investment.
HUTL has captured the economic benefits of the clean energy charge through exposure to the leaders in the clean energy space — including VERBUND AG, Endesa, Fortum, Dominion Energy, and Brookfield Renewable. These firms are investing in:
- Renewable generation (solar, wind, hydro)
- Grid modernization
- Battery storage
- EV infrastructure
Grid Modernization Imperative
With renewables rising, the need for smart grids and resilient transmission infrastructure is urgent. The IEA forecasts $450 billion will go into solar in 2025, with additional surges in grid and storage spending.
HUTL gives investors the opportunity to capitalize on this multi-trillion-dollar energy transition from its exposure to companies deploying capital with regulated or contracted returns. These investments grow their rate base and earnings, supporting both dividend stability and potential growth.
Diversification Benefits
Global & Equal Weighting
While utilities are essential, they face risks from climate events and regulatory shifts. HUTL’s global, equal-weighted approach spreads exposure across regions and reduces concentration risk, helping mitigate regulatory risk as well as country-specific challenges such as wildfires, storms, or political shifts.
Income Generation and Lower Volatility
Steady Monthly Income
Utilities’ stable cash flows and regulated business models make them effective “bond proxies.” HUTL paid monthly distributions of $0.1166 per unit from 2019 through mid-2024, increasing to $0.1216 in July 2024. As of June 18, 2025, HUTL has current yield of 8.01%, an attractive yield for income-investors.
Protection from Volatility
Utilities have historically outperformed during market downturns. In the face of 2025’s persistent volatility, HUTL provides a defensive, income-generating anchor.
Covered Call Strategy
HUTL uses Harvest’s active covered call approach to generate option premiums and reduce portfolio volatility—an added benefit in turbulent markets.
Summary
HUTL combines steady income, global diversification, and exposure to key growth themes: electrification, grid modernization, and the clean energy transition. With its monthly distributions, defensive posture, and upside potential, HUTL stands out as a strategic ETF for income-focused investors looking for resilience and long-term opportunity in the evolving utilities landscape.
The Harvest Equal Weight Global Utilities Enhanced Income ETF (HUTE:TSX) offers even higher levels of monthly cashflow through the application of modest leverage at approximately 25%. This is applied to HUTL’s globally diversified portfolio.
HUTL | Harvest Equal Weight Global Utilities Income ETF
Annual Performance
As at June 30, 2025
| Ticker | 1M | 3M | 6M | YTD | 1Y | 2Y | 3Y | 4Y | 5Y | 6Y | SI |
|---|---|---|---|---|---|---|---|---|---|---|---|
| HUTL | 0.61 | 2.19 | 10.66 | 10.66 | 21.76 | 12.94 | 7.62 | 7.19 | 8.52 | 5.34 | 6.28 |
Benefits:
- Large-cap global utility stocks with long-term sustainable cash flows
- Covered call strategy to enhance cashflow and lower volatility
- $0.1216 monthly cash distribution per unit
- 8.01% current yield (as at June 18, 2025)
- Tax efficient income
HUTE | Harvest Equal Weight Global Utilities Enhanced Income ETF
Annual Performance
As at June 30, 2025
Benefits:
- Access to large-cap global utility portfolio (HUTL)
- Modest leverage at around 25% to enhance monthly cashflow and growth prospects
- $0.0880 monthly cash distribution per unit
- 9.75% current yield (as at June 18, 2025)
- Tax efficient income
Disclaimer
Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds (managed by Harvest Portfolios Group Inc.). Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently, and past performance may not be repeated. Distributions are paid to you in cash unless you request, pursuant to your participation in a distribution reinvestment plan, that they be reinvested into available Class units of the Fund. If a Fund earns less than the amounts distributed, the difference is a return of capital.
The current yield represents an annualized amount that is comprised of 12 unchanged monthly distributions (using the most recent month’s distribution figure multiplied by 12) as a percentage of the closing market price of the Fund. The current yield does not represent historical returns of the ETF.
