DRIV - Utilities Select Sector SPDR ETF: Changing Market Dynamics

• The utilities sector, as a consistent source of income, provides some insulation against the turbulent stock market.
• Among the various sector investment vehicles, XLU with a high trading volume and a growing dividend yield is a better choice despite the fund managers charging a higher expense ratio.
• Volatility risks persist due to consumers having been allowed to defer on payment of power bills, while waiting for further stimulus measures.
• The sector is amid changing market dynamics due to increasing use of renewables both for electricity generation and distribution.
• The current payout ratio of the first six stocks and forthcoming stimulus measures signify that dividends are safe.

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