3 Utilities Mutual Fund Buys as AI Drives Power Demand
BULIX, FSUTX and FKUTX gain traction as utilities ride defensive demand and AI-driven electricity growth, reshaping their role in 2026 portfolios.
XLU vs. VPU: Which Utilities ETF Best Powers the AI Data-Center Boom?
The AI data-center power crunch has turned utilities from bond proxies into growth stocks, and two funds sit at the center of that trade: the Utilities Select Sector SPDR Fund (NYSEARCA:XLU) and the Vanguard Utilities Index Fund ETF (NYSEARCA:VPU).
Should You Invest in the State Street Utilities Select Sector SPDR ETF (XLU)?
The State Street Utilities Select Sector SPDR ETF (XLU) was launched on December 16, 1998, and is a passively managed exchange traded fund designed to offer broad exposure to the Utilities - Broad segment of the equity market.
XLU: The Clean Energy Edge
State Street Utilities Select Sector SPDR ETF offers defensive exposure with growing clean energy relevance, especially as AI-driven power demand accelerates. XLU's top holdings are securing long-term clean energy agreements with major tech firms, positioning the ETF as a proxy for AI infrastructure growth. While most XLU holdings are fairly valued short-term, forward P/E ratios suggest increasing undervaluation by 2027, supporting a medium-to-long-term buy case.
Forget XLU. The Grid Fund Actually Powering the AI Boom Is Up 23% in 2026
If you own the Utilities Select Sector SPDR Fund (NYSEARCA:XLU) as your AI power play, the logic is straightforward: data centers need electricity, regulated utilities sell electricity, so XLU should capture the demand wave.
XLU: Pure Utilities Exposure, And That Is The Point
The State Street Utilities Select Sector SPDR ETF offers pure, passive exposure to regulated utilities with minimal fees and no leverage or active manager risk. XLU's portfolio is anchored by NEE, with strong forward EPS growth (~8%-9% annually), and maintains ~90% regulated utility exposure, limiting thematic drift and execution risk. While XLU's yield (~2.6%) lags leveraged peers, its structure avoids rate sensitivity and discount risks, making it a core, lower-conviction utilities holding.
XLU, XLP, XLRE: A Week in Review
The Utilities Select Sector SPDR ETF (XLU), the Consumer Staples Select Sector SPDR ETF (XLP), and the Real Estate Select Sector SPDR ETF (XLRE) each posted gains over the past week. The moves came during a stretch when the information technology(IT) sector dropped 5.8% last Friday and the Nasdaq-100 fell 4.8%, per MarketWatch reporting.
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 State Street Utilities Select Sector SPDR ETF (XLU) with Chuck Jaffe of Money Life. The pair discussed several topics related to the ETF, in order to give investors a deeper understanding of it.
XLU Investors: Watch PJM's March 2027 Data Center Framework Decision
The Utilities Select Sector SPDR Fund (NYSEARCA:XLU | XLU Price Prediction) has quietly become one of the more interesting trades in the market because it sits at the intersection of two crosscurrents.
ETF of the Week: State Street Utilities Select Sector SPDR ETF (XLU)
VettaFi's Head of Research Todd Rosenbluth discussed the State Street Utilities Select Sector SPDR ETF (XLU) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit our Sector Investing Content Hub.
XLU: Power Demand Boom Meets A New Utility Playbook
State Street Utilities Select Sector SPDR ETF is poised for accelerated earnings growth amid surging domestic power demand. Rising infrastructure investment needs enable U.S. Utilities to redeploy more capital and expand book value faster than historical trends. Partnerships with private equity funds allow utilities to capture developer/operator premiums and increase capital churn.
Predictable Profits: The Case for Utilities Stocks
For those looking to gain targeted exposure, sectors such as utilities that offer a bit of a defensive tilt may not be a bad idea. After all, if the last few months are any indication, macroeconomic uncertainty is likely not going to slow down any time soon.
