Summary
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.
Utilities Select Sector SPDR Fund (XLU) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has Utilities Select Sector SPDR Fund ever had a stock split?
Utilities Select Sector SPDR Fund Profile
| ARCA Exchange | US Country |
Overview
The company operates a fund that focuses on tracking the performance of a specific index related to utilities. This includes a wide range of companies across various sectors such as electric utilities, water utilities, multi-utilities, independent power and renewable electricity producers, and gas utilities. By employing a replication strategy, the company aims to closely match the performance of the index, investing at least 95% of its total assets in the securities that constitute the index. Despite the fund's focus on a diverse range of utilities, it is classified as non-diversified due to its concentrated investment strategy.
Products and Services
- Replication Strategy
This approach involves the fund investing in securities that closely match those found in the designated utilities index. By doing so, it aims to replicate the index's performance as closely as possible, providing investors with a transparent and predictable investment vehicle.
- Index Tracking
The fund's primary objective is to track the performance of a specific utilities index. This index is composed of a variety of companies across several sectors, including electric and water utilities, multi-utilities, renewable energy producers, and gas utilities. Tracking this index allows the fund to provide an investment option that benefits from the diversification within the utilities sector.
- Investment in Utilities
By investing substantially all of its assets in the securities comprising the index, the fund offers exposure to the utilities sector. This includes investments in electric utilities, water utilities, multi-utilities, independent power and renewable electricity producers, and gas utilities, covering a broad spectrum of the utilities industry.
Contact Information
