Forget XLU: These 3 Utility Dividend Stocks Offer More Exposure to AI
XLU gives you exposure to over 30 utilities, but the AI data-center boom is quietly concentrating inside just a handful of them, and owning the fund means paying for a lot of names that will miss the surge entirely.
Tap Into Defense & Long-Term Opportunities With Utilities
Traditionally speaking, when advisors and investors have thought about investing in utilities, it oftentimes is done for defensive purposes. Key Takeaways: Utilities tend to be added to portfolios for their defensive advantages amid inflation, but the sector offers more potential than meets the eye.
Utilities Were Supposed to Be the AI Trade. They're Up 4%.
The Utilities Select Sector SPDR Fund (NYSEARCA:XLU) was the consensus “AI power” trade heading into 2026.
Utilities Are Up 8% on AI Power Demand. The Fund Actually Building the Data Centers Is Up 40%
The Utilities Select Sector SPDR Fund (NYSEARCA:XLU) has quietly become one of the more popular AI-adjacent trades on Wall Street.
Want $6,000 a Year on $100K, Paid Monthly? This Utility Fund Just Raised Its Payout Again
If you hold the Utilities Select Sector SPDR Fund (NYSEARCA:XLU) for defensive income, you already know the appeal: the largest utility ETF, dirt-cheap fees, and a portfolio of regulated power names that tend to hold up when growth stocks wobble.
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.
