This ETF is Crushing the S&P 500. Here's Why It's a Simple Way to Invest in AI While Generating Passive Income from High

AI has fundamentally improved the investment thesis for utility stocks.

The S&P 500 ( ^GSPC -0.64% ) is having another great year, up 9.9% year to date at the time of this writing. But it may surprise investors to learn that the seemingly boring utility sector is doing even better.

The Vanguard Utilities ETF ( VPU -0.45% ) is an excellent way to invest in the U.S. utility sector. Instead of focusing on one region, it holds dozens of stocks across the industry -- which is a good way to achieve diversification. The majority of the fund is in electric utilities and multi-utilities that offer a range of services.

The fund sports a mere 0.09% expense ratio, or less than a dollar in fees for every $1,000 invested. And with a 2.7% yield and a 21.4 price-to-earnings ratio , th