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XLU - ETF AI Analysis
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Utilities Select Sector SPDR Fund (XLU)
Rating:69Neutral
Price Target:
$100.00
Positive Factors
Strong Top Holdings
Several key holdings, such as Constellation Energy and Vistra Energy, have delivered strong year-to-date performance, supporting the fund's overall returns.
Low Expense Ratio
The ETF has a very low expense ratio, making it cost-effective for investors compared to similar funds.
Stable Sector Focus
The fund's focus on utilities provides exposure to a traditionally stable sector, which can help mitigate volatility during uncertain market conditions.
Negative Factors
Sector Concentration Risk
The ETF is heavily concentrated in the utilities sector, which limits diversification and increases vulnerability to sector-specific risks.
Geographic Overexposure
Nearly all of the fund's assets are invested in U.S. companies, offering little protection against international market opportunities or risks.
Mixed Performance Among Holdings
While some holdings have performed well, others like Sempra Energy and Dominion Energy have shown weaker year-to-date returns, which could weigh on overall performance.
XLU vs. SPDR S&P 500 ETF (SPY)
AUM22.73B
RegionNorth America
Expense Ratio0.08%
Beta0.35
IssuerSPDR
Inception DateDec 16, 1998
Dividend Yield2.59%
Asset ClassEquity
Index TrackedS&P Utilities Select Sector
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume10,126,748
30 Day Avg. Volume10,623,500
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
99.21Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering33
XLU Summary
The Utilities Select Sector SPDR Fund (XLU) is an ETF that focuses on the utilities sector, which includes companies providing essential services like electricity, water, and gas. It tracks the S&P Utilities Select Sector Index and holds well-known companies such as NextEra Energy and Duke Energy. Investors might consider XLU for its stability and potential for steady income, as utilities are often less volatile than other sectors. However, new investors should be aware that the fund's performance is closely tied to the utilities sector, which can be affected by changes in energy regulations or economic conditions.
How much will it cost me?The expense ratio for the Utilities Select Sector SPDR Fund (XLU) is 0.08%, which means you’ll pay $0.80 per year for every $1,000 invested. This is lower than average because XLU is a passively managed fund that tracks the S&P Utilities Select Sector Index, keeping costs down.
What would affect this ETF?The Utilities Select Sector SPDR Fund (XLU) could benefit from stable demand for essential services like electricity and water, especially during economic downturns when utilities are considered reliable investments. However, rising interest rates may negatively impact utility companies due to higher borrowing costs, and regulatory changes or shifts toward renewable energy could create challenges for traditional utility providers. The fund’s focus on U.S.-based companies ensures exposure to a stable market but limits growth opportunities in emerging economies.
XLU Top 10 Holdings
The Utilities Select Sector SPDR Fund (XLU) leans heavily on U.S.-based utility giants, with NextEra Energy and Constellation Energy leading the charge. NextEra’s steady growth and robust project pipeline have been a bright spot, while Constellation’s clean energy focus adds a spark despite some financial headwinds. Southern Co and Duke Energy provide stability with their reliable dividends and strategic investments, though high debt levels weigh on their momentum. Meanwhile, Vistra Energy has been lagging, dampened by bearish trends. Overall, the fund’s concentrated exposure to utilities offers a steady ride, but growth remains modest.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| NextEra Energy | 12.18% | $2.76B | $169.52B | 5.24% | 73 Outperform | |
| Constellation Energy Corporation | 8.66% | $1.96B | $117.78B | 46.07% | 66 Neutral | |
| Southern Co | 7.58% | $1.72B | $103.55B | 6.21% | 65 Neutral | |
| Duke Energy | 7.05% | $1.60B | $96.66B | 10.31% | 75 Outperform | |
| American Electric Power | 4.72% | $1.07B | $64.37B | 23.66% | 72 Outperform | |
| Vistra Energy | 4.38% | $991.97M | $63.80B | 57.56% | 69 Neutral | |
| Sempra Energy | 4.37% | $990.22M | $59.99B | 12.60% | 75 Outperform | |
| Dominion Energy | 3.68% | $833.97M | $50.09B | -0.51% | 66 Neutral | |
| Xcel Energy | 3.50% | $792.22M | $48.02B | 21.71% | 72 Outperform | |
| Exelon | 3.44% | $780.51M | $46.58B | 20.89% | 68 Neutral |
XLU Technical Analysis
Positive
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Price Trends
87.26
Positive
85.06
Positive
81.32
Positive
Market Momentum
0.70
Positive
47.25
Neutral
9.58
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLU, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 90.77, equal to the 50-day MA of 87.26, and equal to the 200-day MA of 81.32, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 9.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLU.
XLU Peer Comparison
Comparison Results
Performance Comparison
XLU
Utilities Select Sector SPDR Fund
89.10
14.10
18.80%
VGT
Vanguard Information Technology ETF
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XLK
Technology Select Sector SPDR Fund
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XLF
Financial Select Sector SPDR Fund
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XLV
Health Care Select Sector SPDR Fund
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VNQ
Vanguard Real Estate ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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