State Street Utilities Select Sector SPDR ETF
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A third Fed rate cut this year is boosting utilities, making diversified Utility ETFs like XLU an attractive way to tap lower borrowing costs and steady dividends.
Utilities have lagged as investors chased riskier assets, but lower valuations and steady earnings growth are drawing renewed attention.
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.
The stock market has enjoyed a remarkable run over the past 12 months. Driven by a successful soft landing engineered by the Federal Reserve and the initial excitement surrounding generative artificial intelligence (AI), 2025 rewarded risk-taking.
Utility ETFs like XLU gain momentum as AI-driven data center power demand and falling rate expectations boost the sector's appeal.
State Street Investment Management (SSIM) has been the investment advisor for the Select Sector SPDR ETFs since 1998. It will now take over the distribution and marketing for these funds.
I am thankful for many things this year. I am particularly thankful for my favorite Black Friday special from Mr. Market. I detail why I like this high-yielding bargain.
XLK and other sector ETFs set to gain as expectations surge for a potential Federal Reserve rate cut in December.
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.
AI stocks are getting a lot of hype right now. But history shows that revolutionary technologies almost always become overvalued and overinvested, leading to eventual corrections. Disciplined, long-term investing - resisting FOMO and sticking to a well-designed plan -remains the best path to enduring wealth.
BOSTON--(BUSINESS WIRE)--State Street Investment Management today announced share splits on five Select Sector SPDR ETFs. The splits will decrease the funds' share prices and increase the number of outstanding shares. The aggregate market value of shares outstanding will not be impacted. The share splits will apply to shareholders of record as of the market close on December 2, 2025 and are payable after market close on December 4, 2025. Shares will trade at their post-split price effective Dec.
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.
Fidelity MSCI Utilities Index ETF (FUTY) and Utilities Select Sector SPDR Fund (XLU) both offer strong exposure to U.S. utilities. FUTY is preferred due to superior diversification, slightly lower volatility, and broader subsector representation, despite being smaller than XLU. Both funds benefit from trends like declining interest rates, AI-driven electrification, and attractive dividend yields, making utilities appealing now.
There is a major market disconnect emerging in the midst of the AI boom. I discuss why this disconnect provides investors with one of the most attractive high-yielding investment opportunities I have ever seen with near-term catalysts. I also share some of my top picks to profit from this disconnect.
The macro data suggest that dividend investors may be in for a rude surprise in the wake of the Fed's rate cuts. Because a major macro shift is underway, the usual assumptions dividend investors make may no longer be reliable. I also share how I am seeking to avoid potentially the most dangerous mistake many dividend investors are making right now.
Exchange-traded funds can be a great way for investors to get in on a trend. AI is still a key wave in the stock market.
Matt Camuso, Head of ETF Solutions at BNY Investments, says there are $13 trillion of assets in ETFs. That's compared to $5 trillion a year prior.
These two high-yield funds combine dependable income with exposure to some of the strongest long-term secular trends. They offer high yields that are backed by portfolios filled with high-quality companies. They also trade at very attractive valuations and provide strong dividend growth.
The stock market is historically expensive. Even as a recession is more and more plausible in the near future. Fortunately, many defensive dividend payers remain opportunistic.
Utility ETFs, like XLU and VPU, are set to shine as the Fed's latest rate cut and AI-driven power demand create a powerful tailwind for the sector.