UTG's Hidden Risk: The 2026 Earnings Trap No One Is Pricing In

Reaves Utility Income Trust now straddles an uneasy middle ground between income and growth, lacking compelling yield or clear earnings upside. Recent outperformance was driven by AI-linked merchant power names, increasing portfolio concentration, and exposure to growth-like drawdowns. UTG's top 10 holdings comprise half its portfolio, amplifying risk, especially with 18% leverage and heavy reliance on AI and power demand narratives.