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Special Report This ETF Will Benefit From Americans' Higher Energy BillsReported by Jordan Chussler. Posted: 12/25/2025. 
Key Takeaways - Since President Trump’s second term began, Americans’ power bills have increased 13%.
- Simultaneously, natural gas prices are up 98% as the administration combats new renewable energy projects.
- The First Trust Utilities AlphaDEX Fund provides exposure to the utilities sector, which should benefit from elevated electric rates.
Americans' energy bills have risen about 13% since President Donald Trump took office in January 2025. While that's unwelcome news for households already stretched thin, it could create opportunities for sector investors as we head into the new year. Unlike the beaten-down consumer discretionary sector, utilities—including heat and electricity—are essential for every American home, and higher rates can boost revenues for companies in the space. For investors seeking broad exposure to the sector, the First Trust Utilities AlphaDEX Fund (NYSEARCA: FXU) may be worth a look. Why America's Utility Bills Are Surging The utilities sector stumbled into the new year, posting a loss of more than 3% over the past month—the weakest performance among the S&P 500's 11 sectors. But longer-term tailwinds could emerge in 2026. Americans are facing substantially higher electric bills amid lagging renewable energy buildouts, rising input costs for fossil-fuel generation, and growing electricity demand from AI data centers. As the Trump administration pursues policies aimed at reviving the fossil fuel industry, permitting for renewable projects has slowed. Climate Power reports that these developments have delayed or canceled nearly 25,000 megawatts of planned electric capacity—roughly enough to power 13.17 million homes. That same report notes natural gas prices are up about 98% since January 2025. That's significant because the U.S. Energy Information Administration shows natural gas accounts for more than 43% of U.S. electricity generation. Meanwhile, rising demand from AI data centers is pushing electricity consumption and rates higher nationwide. Some AI stocks posted triple-digit gains in 2025, and several utility companies have benefited as demand for power climbs. AI data centers currently account for about 4.4% of U.S. electricity consumption; estimates put that share at roughly 12%–20% by 2030. At the same time, gas and electric utilities have sought or implemented rate increases totaling more than $85 billion, leaving residents in 49 states facing higher bills. Unless data centers serving AI companies are independently powered, rising electricity consumption should continue to support utility revenues—an outcome that could benefit shareholders of the First Trust Utilities AlphaDEX Fund. Diving Into the FXU Many investors gravitate to large-cap utilities such as NextEra Energy (NYSE: NEE), Constellation Energy (NASDAQ: CEG) and Southern Company (NYSE: SO), or ETFs that hold those names. The First Trust Utilities AlphaDEX Fund takes a different approach. FXU tracks the StrataQuant Utilities Index, which selects holdings from the Russell 1000—an index that includes roughly twice as many companies as the S&P 500. The index ranks stocks using growth factors (three-, six- and 12-month price appreciation, one-year sales growth) and value factors (cash flow, return on assets and others). The result is a portfolio of utility stocks with higher growth potential and balanced allocations, a 0.63% expense ratio and a $1.03 annual dividend per share. Those allocations keep concentration low: none of FXU's top holdings exceeded a 5% weighting at the time of writing. UGI Corporation (NYSE: UGI), the fund's largest position, is weighted at 4.83%, while American Electric Power (NASDAQ: AEP), the 10th-largest holding, is about 3.42%. That lower concentration has helped FXU outperform recently. While the S&P 500 utilities-focused XLU posted an 11.35% year-to-date (YTD) gain in 2025, FXU rose 17.65% YTD, outpacing both the S&P 500 and the Russell 1000. What Wall Street Thinks About the FXU FXU's average daily trading volume—about 256,355 shares—is far lower than XLU's roughly 22.32 million shares, but the fund is not illiquid. Institutional investors have shown interest: over the past 12 months they added more than $610 million to the fund, while outflows totaled about $183 million. Current short interest is small, at roughly 0.25% of the fund's float. ETFs aren't rated the same way individual stocks are, so investor sentiment toward the underlying companies matters most. Based on 329 analyst ratings of the firms inside FXU, the fund carries a Moderate Buy rating.
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