XLU Stock Recent News
XLU LATEST HEADLINES
I think many investors are still underestimating how significant the Artificial Intelligence boom is, and how broadly it will affect markets. While we all know the primary beneficiaries of AI, like Nvidia NVDA , Microsoft MSFT and Alphabet GOOGL , there are a litany of industries and companies that will feel the ripples of this new technology.
If you're interested in broad exposure to the Utilities - Broad segment of the equity market, look no further than the Utilities Select Sector SPDR ETF (XLU), a passively managed exchange traded fund launched on 12/16/1998.
The Utilities Select SPDR Fund is a well-diversified ETF that includes top holdings in utility stocks such as NextEra Energy, Southern Co, and Duke Energy. The ETF has generated solid total returns over the years, with an annual return of about 6.7% since inception and roughly 8% over the past ten years. The ETF is likely to benefit from a potential "Golden Cross" formation on the chart, the expectation of rate cuts by the Federal Reserve, and the increasing demand for energy in the coming years.
SPDRs Select Sector Utilities ETF is facing competition from other market areas and high T-bill rates, dampening enthusiasm for the sector. XLU's low dividend yield reflects the stability and protection from competition that its top holdings have. XLU could potentially experience a technical breakout, but I am not counting on that, and rate it as a hold.
Dividend stocks have underperformed in recent years, with REITs and utilities experiencing particularly severe underperformance. We discuss the reasons why dividend stocks have underperformed so badly. We also share why the bad news is likely not over.
The Utilities Select Sector ETF offers low-cost access to 30 large-cap utility stocks in the US. XLU has a stable portfolio with low turnover, but questions may be asked about its weighting methodology as it has lagged an equally weighted portfolio of similar stocks. Two-thirds of XLU's portfolio consists of electric utility stocks, which have been witnessing decent pricing power and strong earnings growth.
XLU has pulled back sharply in recent weeks. Despite the weak recent performance in the sector, billionaire investors and leading asset managers are pouring hundreds of billions of dollars into the sector.
Launched on 12/16/1998, the Utilities Select Sector SPDR ETF (XLU) is a passively managed exchange traded fund designed to provide a broad exposure to the Utilities - Broad segment of the equity market.
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