Utilities Select Sector SPDR
Utilities Select Sector SPDR (XLU) is an exchange-traded fund that tracks the S&P 500 utilities sector, giving investors concentrated exposure to large US utility companies. It is commonly used for income and defensive sector exposure because many utilities pay dividends and operate in regulated markets with steady demand. Investors should know XLU’s returns come from share-price moves and dividend payments; dividends are not guaranteed and can vary. The fund can be sensitive to interest-rate moves, regulatory changes and commodity costs, and it lacks broad sector diversification. Fees, yield, holdings and liquidity can change, so check the latest factsheet before investing. This summary is educational only and not personalised advice. Consider how a utilities allocation would fit your overall portfolio, risk tolerance and investment horizon, and consult a qualified adviser for tailored guidance.
Stock Performance Snapshot
Dividend
The Utilities Select Sector SPDR has a below average dividend yield of 2.64%. If you invested $1000 you would be paid $26.40 a year in dividends (based on the last 12 months).
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Baskets Featuring XLU
Fed Policy Shift Explained: Defensive Investment Guide
A recent warning from a top Federal Reserve official about a weakening U.S. job market suggests a cautious approach to future monetary policy. This pivot could create investment opportunities in defensive, high-quality companies that can better withstand economic uncertainty.
Published: October 5, 2025
Explore BasketDefensive Stocks: Could Labor Market Cooling Help?
The recent surge in jobless claims to a nearly four-year high suggests the U.S. labor market is cooling, increasing the likelihood of Federal Reserve interest rate cuts. This scenario could create opportunities in defensive sectors like consumer staples and utilities, which tend to remain stable during economic slowdowns.
Published: September 12, 2025
Explore BasketDefensive Plays For A Cooling Labor Market
The recent U.S. jobs report showed significantly slower growth than anticipated, signaling a potential economic slowdown. This situation could prompt the Federal Reserve to lower interest rates, creating a favorable environment for defensive stocks like consumer staples and utilities that offer stability and consistent dividends.
Published: August 5, 2025
Explore BasketNavigating The U.S. Manufacturing Contraction
The continued contraction of the U.S. manufacturing sector suggests a broader economic slowdown, prompting a potential shift in Federal Reserve policy. This environment could create opportunities in defensive stocks, such as those in the consumer staples and utilities sectors, which tend to be more resilient during economic downturns.
Published: August 3, 2025
Explore BasketWhy You’ll Want to Watch This Stock
Income-focused ETF
Holds dividend-paying utilities that can offer steady income, though dividends can fall and are not guaranteed.
Regulated, stable demand
Utilities operate in regulated markets with predictable demand, but policy changes and capital spending can affect returns.
Interest-rate sensitivity
Utility stocks can be sensitive to rising interest rates and inflation, which may weigh on share prices despite income potential.
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