The Utilities Select Sector SPDR Fund (XLU), focused on regulated utilities, has gained 7.03% year-to-date, lagging behind the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID), which is up over 23%. GRID invests in equipment makers and transmission specialists benefiting directly from AI-driven data center power demand, unlike XLU which grows slowly through regulated rate cases. Companies like GE Vernova and Quanta Services report strong order backlogs and revenue growth, driving GRID's superior returns. While GRID has higher fees and lower dividends, it captures the faster-growing equipment cycle tied to AI power needs, making it a compelling partial swap for investors targeting AI exposure in utilities.
Industrials and utilities sectors are benefiting first from the current wave of AI-related capital spending, as they provide the physical infrastructure like data centers and power grids needed for AI systems. Meanwhile, technology companies, despite...
Financial advisors are increasingly favoring sector ETFs over mutual funds, with ETF allocations expected to surpass mutual fund allocations by 2027. This shift is driven by a decline in corporate dividends, replaced by share buybacks, prompting advi...
Barclays increased its year-end 2026 S&P 500 target to 7,800 from 7,650, driven by a stronger earnings outlook for U.S. companies. The bank raised its 2026 earnings-per-share estimate to $337, expecting about 21% annual growth from 2025. Despite trim...
