2024-03-31 06:57:47 ET
Summary
- The Utilities Select SPDR Fund is a well-diversified ETF that includes top holdings in utility stocks such as NextEra Energy, Southern Co, and Duke Energy.
- The ETF has generated solid total returns over the years, with an annual return of about 6.7% since inception and roughly 8% over the past ten years.
- The ETF is likely to benefit from a potential "Golden Cross" formation on the chart, the expectation of rate cuts by the Federal Reserve, and the increasing demand for energy in the coming years.
The Utilities Select SPDR Fund ( XLU ) is a popular ETF for investors who want to buy a well-diversified basket of utility stocks. Some of the top holdings include: NextEra Energy ( NEE ) which makes up about 12.4% of the fund, Southern Co ( SO ) is around 8% of this fund, Duke Energy ( DUK ) is about 7.75% of this fund, Constellation Energy ( CEG ) makes up about 5.9% of the fund and there are numerous other positions like American Electric Power ( AEP ), Sempra ( SRE ), and Dominion Energy ( D ), etc., that make up less than 5% of the portfolio. This fund yields nearly 3.5%, which makes it an attractive income option, especially for retirees who want relative safety even when there is an economic downturn....
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For further details see:
Utilities Are Breaking Out: 4 Reasons To Buy XLU