UTES offers active exposure to utility stocks. Active exposure is rare among sector funds, especially with respect to utilities. The managers use fundamental, growth, and risk-based metrics looking to outperform the broader sector from a total return perspective. Examples of the metrics include capital structure, historical earnings growth and share price volatility. Dividends are a factor too, but the fund does not appear to be yield-focused despite its dividend-heavy sector. Reaves Asset Management manages the portfolio day to day in addition to this ETF, the firm runs utilities-oriented mutual funds and SMAs.