XLU: Why I Am Upgrading Utilities
I upgrade State Street Utilities Select Sector SPDR ETF from Sell to Hold after a notable price decline and improved valuation metrics. XLU's price-to-book is now 2.3x, P/E is 19.4x, and dividend yield stands at 2.85%. Interest rate trends and recession risk remain key headwinds, but XLU is no longer excessively expensive.
VIDEO: ETF of the Week: XLU
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research, Todd Rosenbluth, discussed the Utilities Select Sector SPDR Fund (XLU) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF.
ETF of the Week: Utilities Select Sector SPDR Fund (XLU)
VettaFi's Head of Research Todd Rosenbluth discussed the Utilities Select Sector SPDR Fund (XLU) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit ETF Trends.
Utility ETFs in the Spotlight as Q3 Earnings Season Kicks Off
AI-driven power demand and solid Q3 earnings from utilities like FE put ETFs such as XLU, VPU and IDU in focus.
Should You Invest in the Utilities Select Sector SPDR ETF (XLU)?
Launched on December 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.
The XLU Buy Thesis: Cheap And Better Growth
The Utilities Sector ETF is attractively valued after a recent price drop, trading at a significant discount to the S&P 500. XLU offers above-average revenue and earnings growth, fueled by strong electricity demand and the AI infrastructure buildout, surpassing S&P growth forecasts. Utilities provide defensive benefits and recession resistance, making XLU well-positioned to outperform if the economy weakens or interest rates decline further.
XLU: Utility Dividend Spread To Treasuries Is Too Low, Creating Overvaluation Risk
XLU's dividend is a tiny 2.65% today, with its spread to Treasuries seemingly bouncing off long-term lows. The stagnation in gold's price indicates that investor appetite for "monetary devaluation hedges" is slowing, impacting real interest rate proxies like utilities. In the short-term, deflation may be a greater risk than inflation, but as in 2020, I expect the Fed will shift too dovish, due to debt concerns.
Should You Invest in the Utilities Select Sector SPDR ETF (XLU)?
Looking for broad exposure to the Utilities - Broad segment of the equity market? You should consider the Utilities Select Sector SPDR ETF (XLU), a passively managed exchange traded fund launched on December 16, 1998.
XLU: Utility Stocks Are Trouncing Oil & Gas Stocks This Year
The utility sector is booming while oil stocks continue to suffer from strong supply and weak demand. As a result, energy investors should prioritize the XLU Utility ETF over XLE. XLU components like NextEra and Vistra are well-positioned for AI-driven growth and clean-energy expansion, supporting the ETF's outperformance going forward. XLU offers relative safety, income, and growth, with a 2.7% yield and significant valuation discounts versus the S&P 500.
Utilities ETF (XLU) Hits New 52-Week High
XLU surged to a 52-week high, gaining 21.5% from its low, as investor demand for defensive plays heats up.
Final Trade: XLU, OIH, QQQ, LVMUY
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
XLU Vs. UTF: We Prefer A Leveraged Utility Play Amid 'Build, Baby, Build'
Recent policy and rate outlook shifts make UTF more attractive than XLU, prompting my upgrade of UTF to a buy rating. UTF's diversified infrastructure exposure is better positioned for potential Trump-era "build, baby, build" policy tailwinds than XLU's concentrated electric utilities focus. UTF's leveraged structure stands to benefit from anticipated interest rate cuts.
