The S&P 500 index was recently up 14% in total returns over the past year, while the utilities sector had surged 25% as domestic electricity demand reached a record high in 2024. JPMorgan Chase strategists estimate electricity demand will more than triple in the next few years compared to the previous decade, so consider investing in the Vanguard Utilities ETF (ticker: VPU).

The Vanguard Utilities ETF encompasses 69 U.S. utilities companies. Its recent top five holdings by weighting were NextEra Energy, Constellation Energy, Southern Company, Duke Energy and Vistra.

Artificial intelligence consumes a tremendous amount of power, especially while developing and training each model. Adoption of electric vehicles and increased domestic manufacturing should also contribute to demand for electricity.

Utility companies are often legal monopolies that generate consistent but slow-growing earnings; as a result, the utilities sector has often underperformed the S&P 500. But they are typically seen as defensive investments because they provide essential services, which means they’re somewhat resistant to recessions. (JPMorgan Chase is an advertising partner of Motley Fool Money. The Motley Fool owns shares of and recommends Goldman Sachs Group, JPMorgan Chase and NextEra Energy. It recommends Constellation Energy and Duke Energy.)

Ask the Fool

Q. What, exactly, are “tech stocks”? – H.B., Hickory, North Carolina

A. There’s no single definition, but in general, they’re stocks tied to companies that are technology-oriented. They may include software companies, computer hardware manufacturers, semiconductor specialists, smartphone makers, wireless telecommunications businesses, streaming services, cloud computing providers and more.

It’s worth noting, though, that these days, many companies not considered tech stocks also employ (and are often dependent on) technology. Brokerages, for example, conduct much of their business via online platforms. Pharmaceutical companies rely on technology to help them track and manage the clinical trials of their drugs in development. Some restaurants have begun employing robotic servers, while some retailers have robots working in warehouses. Some farmers are using artificial intelligence (AI) technology to help them make planting and other decisions. And some homebuilders are 3D-printing homes.

These days, technology is everywhere.

Q. How are stockbrokers paid? – K.G., Erie, Pennsylvania

A. If you’re referring to people through whom you might buy or sell stock, or someone who might call you and try to sell you an investment, their compensation can include a salary, commissions on sales of investments, incentive bonuses and advisory fees. Much depends on their employer. According to Indeed.com, the average base salary of a U.S. broker was recently $69,376, with salaries ranging between $30,977 and $155,276.

If you were wondering instead about brokerages, here’s the scoop: They used to make a lot by charging trading commissions, but many now charge $0 for that. Instead, they now rake in money via interest on margin loans and fees for asset management and other services.

My smartest investment

My smartest investment was buying shares of Axon Enterprise four years ago at $81 per share. I bought because I’d seen Axon’s Tasers in use online, and because of their police-worn bodycams, for which they charge ongoing subscription fees for video storage, retrieval and so on. In the current environment, police support and spending on the latest technology could be poised to grow. My shares were recently trading at over $500 apiece – an incredible increase – with, I believe, more to come. (The gain made a nice offset for some bad buys.) – E.T., San Diego

The Fool responds: Axon has indeed been an impressive performer, averaging annual gains of more than 30% over the past 10 and 15 years. You’re right that the new administration might deliver helpful tailwinds to Axon – but remember that it also might not.

In addition, Axon’s stock recently looked overvalued, with a price-to-sales ratio near 20, well above its five-year average of around 12. It could still serve long-term investors well, but the stock might pull back to a lower valuation for a while.

You were smart to appreciate how big winners can offset losses in a portfolio. You can offset gains with losses on your tax return, too, if you sell shares of both winners and losers.

(Do you have a smart or regrettable investment move to share with us? Email it to TMFShare@fool.com.)