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.
XLU: Why I Am Upgrading S&P 500 Utilities
State Street Utilities Select Sector SPDR ETF is upgraded from Sell to Hold after recent underperformance versus equities. XLU remains 5.5% below its all-time high, with support at $44.50 and resistance at $46.50–$47.50; year-to-date return is 6.6%. Scenario analysis yields a modest 1.3% expected price return, with Utilities' defensive appeal offset by competition from higher-yielding bonds.
Should You Invest in the State Street Utilities Select Sector SPDR ETF (XLU)?
Looking for broad exposure to the Utilities - Broad segment of the equity market? You should consider the State Street Utilities Select Sector SPDR ETF (XLU), a passively managed exchange traded fund launched on December 16, 1998.
XLU: Why It Is A Good Time To Take Profits
State Street Utilities Select Sector SPDR ETF (XLU) is downgraded to Sell after reaching an all-time high, with limited upside and potential downside risk. XLU's recent rally is driven by sector rotation into Value and away from Growth, but its 2.5% yield lags alternatives like AGG's 3.9%. I expect XLU to underperform cash and see a year-end price decline of 7.8%, with a total return of -5.3%.
Should You Invest in the State Street Utilities Select Sector SPDR ETF (XLU)?
Designed to provide broad exposure to the Utilities - Broad segment of the equity market, the State Street Utilities Select Sector SPDR ETF (XLU) is a passively managed exchange traded fund launched on December 16, 1998.
