Summary
- The XLU Utilities Select Sector SPDR ETF has outperformed the S&P 500 by more than 20%+ over the past year.
- However, I think XLU has further to run due to a number of bullish catalysts.
- These include two demand related catalysts: global warming & greater EV adoption, as well as the Biden administration's ability to pass clean-energy and infrastructure legislation.
- And two fundamental catalysts: decent income (2.64%) and - with a price-to-book ratio of only 2.5x - the utility sector still trades at a big discount to the overall S&P 500 (P/B=3.9x).
For further details see:
XLU: Suddenly, Utilities Rock