Many Active ETFs Are Dressed-Up Index Funds. How to Find the True Stockpickers.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2024
0mins
Should l Buy EXC?
Source: Barron's
Growth of Actively Managed ETFs: The actively managed ETF market has seen significant growth, with 82% of the 1,619 available ETFs listed since 2020; however, many are not traditional active funds but rather systematic strategies that closely resemble indexed approaches.
Characteristics of True Active Management: Genuine active management is characterized by a smaller number of holdings and in-depth research by analysts, as exemplified by funds like T. Rowe Price Capital Appreciation Equity ETF and Putnam Focused Large Cap Value ETF, which focus on fewer stocks and employ extensive analyst insights for stock selection.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy EXC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on EXC
Wall Street analysts forecast EXC stock price to rise
15 Analyst Rating
7 Buy
6 Hold
2 Sell
Moderate Buy
Current: 47.290
Low
39.00
Averages
49.46
High
57.00
Current: 47.290
Low
39.00
Averages
49.46
High
57.00
About EXC
Exelon Corporation is a utility services holding company engaged in the energy transmission and distribution businesses through its subsidiaries, Commonwealth Edison Company (ComEd), PECO Energy Company (PECO), Baltimore Gas and Electric Company (BGE), Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE). Its segments include ComEd, PECO, BGE, Pepco, DPL and ACE. ComEd segment is engaged in purchasing and regulating the retail sale of electricity. PECO segment is engaged in purchasing and regulating the retail sale of electricity and natural gas. Through its business services subsidiary, Exelon Business Services Company, LLC (BSC), it provides its subsidiaries with a variety of support services at cost, including legal, human resources, finance, information technology and supply management services. BGE segment is focused on transmission and distribution of electricity and distribution of natural gas to retail customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
The Importance of Market Capitalization Analysis
- Market Capitalization Comparison: Exelon Corp (EXC) has a market cap of $48.25 billion, while Teradyne, Inc. (TER) stands at $47.58 billion, illustrating their relative value in the market and aiding investors in making more informed decisions.
- Investor Misconceptions: Many beginners mistakenly believe that a higher stock price indicates greater company value, but market capitalization provides a true basis for comparison, allowing investors to better understand company size and worth.
- Impact on Fund Investments: A company's market capitalization determines its size tier among peers, which directly influences which mutual funds and ETFs are willing to hold the stock, particularly as large funds tend to favor companies valued over $10 billion.
- Market Performance Dynamics: As of Tuesday's close, EXC is up about 0.2%, while TER has risen approximately 5.3%, reflecting differing market perceptions and shifts in investor sentiment towards these companies.
See More
Ecosuite Joins Washington Solar Aggregation Project
- Project Background: Ecosuite, in partnership with Ecogy Energy, has been selected by the DC Public Service Commission to participate in a five-year Solar Aggregation and Advanced Inverter Project aimed at exploring more effective management of local solar and energy resources.
- Funding Support: The project is funded through the Modernizing the Energy Delivery System for Increased Sustainability (MEDSIS) program, established as part of the Pepco-Exelon merger in 2016, demonstrating the company's ongoing commitment to renewable energy.
- Technology Deployment: Ecosuite will deploy its open-source software platform and on-site edge compute nodes at least three locations in Washington, D.C., integrating solar generation, battery storage, and EV charging loads to explore how real-time coordination can enhance solar hosting capacity.
- Future Outlook: The Vice President of Pepco stated that this project will provide insights into how new technologies can help customers connect solar and clean energy resources more easily, aiming to deliver more resilient and efficient solutions for the future electric grid.
See More
Exelon Rated Among Top Utility Stocks for Dividends in 2026
- Price Target Increase: Evercore ISI raised Exelon Corporation's price target from $55 to $58 while maintaining an 'Outperform' rating, indicating over 17% upside potential from current levels, reflecting optimistic market sentiment towards the utility sector.
- Earnings Beat: Exelon exceeded earnings estimates in its recent Q4 report, driven by higher electricity rates and increased power demand, with an adjusted EPS target of $2.81 to $2.91 for FY 2026, showcasing the company's sustained profitability.
- Capital Expenditure Plans: The company plans to invest $41.3 billion in capital expenditures over the next four years, aiming for annual earnings growth near the top end of its 5%-7% guidance range, indicating confidence in future growth and strategic positioning.
- High Dividend Yield: With an annual dividend yield of 3.40%, Exelon ranks among the best high-yield utility stocks to buy in 2026, attracting attention from income-seeking investors.
See More
High Dividend Stocks Favored Amid Market Turbulence
- Investor Preference: During turbulent and uncertain market conditions, many investors gravitate towards high dividend-yielding stocks, which typically possess strong free cash flows and reward shareholders with substantial dividends, thereby bolstering investor confidence.
- Sector Focus: High-yield stocks in the utilities sector, such as WEC Energy Group Inc, Exelon Corp, and Evergy Inc, are highlighted by analysts for their stable cash flows and reliable dividend payments, indicating strong market trust in these companies.
- Analyst Ratings: The ratings from the most accurate analysts suggest that these high-yield stocks are performing well in the current market environment, reflecting a growing investor appetite for stable income, which may attract more capital into these firms.
- Market Trends: As market uncertainty intensifies, the demand for high dividend stocks is likely to continue rising, which not only helps elevate the stock prices of these companies but may also drive growth across the entire utilities sector.
See More
Utility Stocks as a Hedge Against Geopolitical Risks and AI Growth
- Defensive Investment Strategy: Wells Fargo analysts highlight that utility stocks like American Water Works and Exelon can serve as strong defensive plays amid escalating market volatility due to the U.S.-Iran conflict, with expectations of continued relative outperformance in both down and up markets.
- Historical Performance Advantage: The utilities sector has historically outperformed the S&P 500 by approximately 780 basis points during global conflicts and recessions, indicating its stability and risk mitigation capabilities during uncertain times, a trend expected to persist amid the current conflict in Iran.
- AI Demand Driving Growth: With a surge in data center construction, utility companies like American Water Works are poised to benefit as they provide essential water resources for AI facility operations, with the stock rising about 8% over the past month and a current dividend yield of 2.4%.
- Exelon's Growth Potential: Exelon's business structure allows it to complete reliability upgrades in the coming years, with load growth expected to reach 3.3% from 2026 to 2029, while its stock has jumped 10% in the past month, currently yielding 3.5% in dividends.
See More
Trump Pushes Tech Firms for Self-Powered AI Data Centers
- Self-Power Commitment: Trump is set to sign an agreement with major tech firms like Amazon, Google, and Meta, mandating them to supply their own power for AI data centers, addressing rising public anger over electricity prices, although the specifics of the commitment remain unclear.
- Rising Electricity Pressure: Average residential electricity prices in the U.S. increased by 6% in 2025, contrasting Trump's promise to halve prices during his term, highlighting the government's challenges in controlling energy costs, which could impact his support in the midterm elections.
- Implementation Challenges: The decentralized nature of electric grid regulations across states poses significant hurdles for the Trump administration in converting the pledge into actionable policy, with experts indicating that new federal legislation is necessary to address power supply shortages.
- Increased Political Pressure: Trump is leveraging his political influence to pressure tech companies into absorbing the costs associated with their data centers, despite the complexities arising from state-level regulation of power generation, which may complicate policy implementation.
See More
The Importance of Market Capitalization Analysis
- Market Capitalization Comparison: Exelon Corp (EXC) has a market cap of $48.25 billion, while Teradyne, Inc. (TER) stands at $47.58 billion, illustrating their relative value in the market and aiding investors in making more informed decisions.
- Investor Misconceptions: Many beginners mistakenly believe that a higher stock price indicates greater company value, but market capitalization provides a true basis for comparison, allowing investors to better understand company size and worth.
- Impact on Fund Investments: A company's market capitalization determines its size tier among peers, which directly influences which mutual funds and ETFs are willing to hold the stock, particularly as large funds tend to favor companies valued over $10 billion.
- Market Performance Dynamics: As of Tuesday's close, EXC is up about 0.2%, while TER has risen approximately 5.3%, reflecting differing market perceptions and shifts in investor sentiment towards these companies.
See More
Ecosuite Joins Washington Solar Aggregation Project
- Project Background: Ecosuite, in partnership with Ecogy Energy, has been selected by the DC Public Service Commission to participate in a five-year Solar Aggregation and Advanced Inverter Project aimed at exploring more effective management of local solar and energy resources.
- Funding Support: The project is funded through the Modernizing the Energy Delivery System for Increased Sustainability (MEDSIS) program, established as part of the Pepco-Exelon merger in 2016, demonstrating the company's ongoing commitment to renewable energy.
- Technology Deployment: Ecosuite will deploy its open-source software platform and on-site edge compute nodes at least three locations in Washington, D.C., integrating solar generation, battery storage, and EV charging loads to explore how real-time coordination can enhance solar hosting capacity.
- Future Outlook: The Vice President of Pepco stated that this project will provide insights into how new technologies can help customers connect solar and clean energy resources more easily, aiming to deliver more resilient and efficient solutions for the future electric grid.
See More
Exelon Rated Among Top Utility Stocks for Dividends in 2026
- Price Target Increase: Evercore ISI raised Exelon Corporation's price target from $55 to $58 while maintaining an 'Outperform' rating, indicating over 17% upside potential from current levels, reflecting optimistic market sentiment towards the utility sector.
- Earnings Beat: Exelon exceeded earnings estimates in its recent Q4 report, driven by higher electricity rates and increased power demand, with an adjusted EPS target of $2.81 to $2.91 for FY 2026, showcasing the company's sustained profitability.
- Capital Expenditure Plans: The company plans to invest $41.3 billion in capital expenditures over the next four years, aiming for annual earnings growth near the top end of its 5%-7% guidance range, indicating confidence in future growth and strategic positioning.
- High Dividend Yield: With an annual dividend yield of 3.40%, Exelon ranks among the best high-yield utility stocks to buy in 2026, attracting attention from income-seeking investors.
See More
High Dividend Stocks Favored Amid Market Turbulence
- Investor Preference: During turbulent and uncertain market conditions, many investors gravitate towards high dividend-yielding stocks, which typically possess strong free cash flows and reward shareholders with substantial dividends, thereby bolstering investor confidence.
- Sector Focus: High-yield stocks in the utilities sector, such as WEC Energy Group Inc, Exelon Corp, and Evergy Inc, are highlighted by analysts for their stable cash flows and reliable dividend payments, indicating strong market trust in these companies.
- Analyst Ratings: The ratings from the most accurate analysts suggest that these high-yield stocks are performing well in the current market environment, reflecting a growing investor appetite for stable income, which may attract more capital into these firms.
- Market Trends: As market uncertainty intensifies, the demand for high dividend stocks is likely to continue rising, which not only helps elevate the stock prices of these companies but may also drive growth across the entire utilities sector.
See More
Utility Stocks as a Hedge Against Geopolitical Risks and AI Growth
- Defensive Investment Strategy: Wells Fargo analysts highlight that utility stocks like American Water Works and Exelon can serve as strong defensive plays amid escalating market volatility due to the U.S.-Iran conflict, with expectations of continued relative outperformance in both down and up markets.
- Historical Performance Advantage: The utilities sector has historically outperformed the S&P 500 by approximately 780 basis points during global conflicts and recessions, indicating its stability and risk mitigation capabilities during uncertain times, a trend expected to persist amid the current conflict in Iran.
- AI Demand Driving Growth: With a surge in data center construction, utility companies like American Water Works are poised to benefit as they provide essential water resources for AI facility operations, with the stock rising about 8% over the past month and a current dividend yield of 2.4%.
- Exelon's Growth Potential: Exelon's business structure allows it to complete reliability upgrades in the coming years, with load growth expected to reach 3.3% from 2026 to 2029, while its stock has jumped 10% in the past month, currently yielding 3.5% in dividends.
See More
Trump Pushes Tech Firms for Self-Powered AI Data Centers
- Self-Power Commitment: Trump is set to sign an agreement with major tech firms like Amazon, Google, and Meta, mandating them to supply their own power for AI data centers, addressing rising public anger over electricity prices, although the specifics of the commitment remain unclear.
- Rising Electricity Pressure: Average residential electricity prices in the U.S. increased by 6% in 2025, contrasting Trump's promise to halve prices during his term, highlighting the government's challenges in controlling energy costs, which could impact his support in the midterm elections.
- Implementation Challenges: The decentralized nature of electric grid regulations across states poses significant hurdles for the Trump administration in converting the pledge into actionable policy, with experts indicating that new federal legislation is necessary to address power supply shortages.
- Increased Political Pressure: Trump is leveraging his political influence to pressure tech companies into absorbing the costs associated with their data centers, despite the complexities arising from state-level regulation of power generation, which may complicate policy implementation.
See More
