XLU: AI Growth Spurt Drives The Breakout Story
XLU ETF has surged over 30% in the past year, driven by a dovish Fed and the AI growth story. The utilities sector is becoming increasingly pivotal to meeting the surge in electricity demand. The Fed's interest rate cuts have also bolstered XLU's tailwinds, removing a significant impediment.
Forget Technology, Focus on Utility ETFs to Tap AI Boom
While the tech sector has become overvalued, utility is still undervalued and could be worth investing in to tap the AI boom.
Are Utility Stocks Running Out of Steam? What You Need to Know
Investors might begin to question whether this surge has gone too far or too fast as the utilities sector continues its impressive climb. With the sector ETF's Utilities Select Sector SPDR NYSE: XLU recent outperformance, some might be wondering if it's now overbought and due for a pullback in the short term.
Prediction: This Unexpected Category Will Finish 2024 as the Stock Market's Top Sector
The utility sector has been the top-performing sector in the stock market so far this year. Falling long-term interest rates and rising demand for electricity are helping to lift these stocks.
XLU: Not Likely To Be A Safe Haven In A Troubled Market
Investors considering hedging bets may think XLU offers a safe haven based on backtesting. The Utility sector outperformed the S&P 500 during the "lost decade" of the 2000s. But its current valuation and yield suggest that now is not the time to buy. The challenges the utility sector faces have changed dramatically since the early 2000s, too, making it a far less safe place to invest your money today.
Should You Invest in the Utilities Select Sector SPDR ETF (XLU)?
Designed to provide broad exposure to the Utilities - Broad segment of the equity market, the Utilities Select Sector SPDR ETF (XLU) is a passively managed exchange traded fund launched on 12/16/1998.
XLU: Improving Earnings Growth Outlook, And Lower Rate Environment Will Be Beneficial
XLU ETF has a portfolio of 30 large-cap U.S. utility stocks with a low expense ratio of 0.09%. XLU outperformed the S&P 500 and Nasdaq 100 in 2024, with improving long-term earnings growth outlook for the utilities sector. An eventual decline in rate will act as a catalyst to XLU's fund price.
Utilities Stocks Are Powering Up: XLU on the Verge of a Breakout
In the exchange-traded funds (ETFs) world, the Utilities Select Sector SPDR Fund NYSE: XLU demonstrates a notable bullish setup. The XLU is now up almost 12% year-to-date, consolidating in a bullish wedge just under 3% away from its 52-week high and trading above all major moving averages.
Very Good News For Utilities: XLU
Utility stocks have underperformed the market recently due to rising interest rates. However, there are three major macro factors that are likely going to push utilities higher relative to the broader market moving forward. We discuss the ramifications for The Utilities Select Sector SPDR® Fund ETF, as well as some of our top picks of the moment in the utilities space.
XLU: Negative FCF May Lead To Dividend Cuts
The XLU portfolio has a substantial negative FCF estimated for the next two years of over US$14bn per year. High capex requirements for capacity expansion may lead to increased debt, reduced dividends, or capital raises for XLU holdings. Portfolio consensus price target upside potential of 9% seems reasonable, barring dividend cuts.
Should You Invest in the Utilities Select Sector SPDR ETF (XLU)?
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.
XLU: Utilities Are Attractive, Some More Than Others
Utilities have become attractive investments due to cheaper valuations and improved fundamental growth. The utilities sector has underperformed recently, but there is potential for higher returns in the future. Certain utilities stocks, such as Pinnacle West, Duke Energy, and Dominion Energy, are well-positioned to capture growth in electricity demand.
