The State Street Utilities Select Sector SPDR ETF (XLU) has been upgraded from Sell to Hold following its recent underperformance compared to the broader equity market. Although XLU remains 5.5% below its all-time high, it has a year-to-date return of 6.6% and shows support and resistance levels at $44.50 and $46.50–$47.50, respectively. The ETF's defensive appeal is balanced by competition from higher-yielding bonds, resulting in a modest expected price return of 1.3%. While alternative ETFs like REGL, SMDV, EUSA, and RSP offer better risk/reward profiles, XLU remains suitable for investors focused on large-cap utilities exposure.
Water utilities are currently undervalued by 25% compared to their 11-year averages, presenting a potential buying opportunity. In contrast, gas and electricity subsectors remain moderately overvalued. For long-term investors, the Vanguard Utilities ...
US equity markets advanced this week, driven by strong momentum in growth and technology sectors. The Nasdaq 100 ETF rose 5.69%, and the Technology Select Sector ETF climbed 8.31%, reflecting renewed investor interest in high-growth and semiconductor...
