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XLU - ETF AI Analysis
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Utilities Select Sector SPDR Fund (XLU)
Rating:67Neutral
Price Target:―
Positive Factors
Large, Established Fund
The ETF manages a very large pool of assets, which suggests strong investor interest and good trading liquidity.
Low Expense Ratio
The fund charges a relatively low fee, so less of your potential return is lost to ongoing costs.
Many Strong Utility Leaders
Several of the biggest holdings, such as major U.S. utility companies, have shown steady to strong performance this year, helping support the fund’s results.
Negative Factors
Sector Concentration in Utilities
Almost all of the fund is invested in the utilities sector, so it may fall more if that single sector runs into trouble.
Heavy U.S.-Only Exposure
The ETF is almost entirely invested in U.S. companies, offering little geographic diversification outside the United States.
Mixed Performance Among Top Holdings
A few of the largest positions have shown weak or negative performance this year, which can drag on the fund’s overall returns.
XLU vs. SPDR S&P 500 ETF (SPY)
AUM22.99B
RegionNorth America
Expense Ratio0.08%
Beta0.31
IssuerSPDR
Inception DateDec 16, 1998
Dividend Yield2.49%
Asset ClassEquity
Index TrackedS&P Utilities Select Sector
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume33,090,228
30 Day Avg. Volume23,069,358
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
48.63Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering32
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
XLU Summary
XLU is an ETF that follows the S&P Utilities Select Sector index, focusing on U.S. utility companies that provide essential services like electricity, gas, and water. It holds well-known names such as NextEra Energy and Duke Energy. Investors might consider XLU if they want a more stable part of the stock market, potential dividend income, and diversification away from fast-moving growth sectors. However, because it is heavily concentrated in utilities, its performance can lag when other sectors, like technology or consumer stocks, are leading the market, and it can still go up and down with overall market 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
XLU is very much a pure U.S. utilities play, and its story starts with heavyweight NextEra Energy, which has been rising and doing much of the heavy lifting thanks to solid growth plans. Southern, Duke, American Electric Power, and Dominion are also generally steady contributors, helping keep the fund’s ride relatively smooth even when momentum looks a bit tired. On the flip side, Constellation Energy and Vistra have been lagging lately, acting as small speed bumps. Overall, this is a concentrated bet on large U.S. power and gas names, not a global growth hunt.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| NextEra Energy | 13.73% | $3.14B | $195.35B | 37.82% | 71 Outperform | |
| Southern Co | 7.31% | $1.67B | $104.55B | 10.95% | 68 Neutral | |
| Duke Energy | 7.03% | $1.61B | $99.70B | 14.87% | 70 Outperform | |
| Constellation Energy Corporation | 6.18% | $1.42B | $104.51B | -9.10% | 68 Neutral | |
| American Electric Power | 4.85% | $1.11B | $70.28B | 27.60% | 69 Neutral | |
| Sempra Energy | 4.34% | $994.68M | $61.86B | 12.70% | 61 Neutral | |
| Dominion Energy | 3.99% | $913.29M | $56.79B | 19.64% | 63 Neutral | |
| Vistra Corp | 3.73% | $853.18M | $58.11B | 2.28% | 65 Neutral | |
| Exelon | 3.44% | $789.00M | $49.59B | 13.14% | 67 Neutral | |
| Xcel Energy | 3.35% | $767.33M | $48.26B | 18.92% | 61 Neutral |
XLU Technical Analysis
Positive
―
Price Trends
43.05
Positive
43.70
Positive
42.24
Positive
Market Momentum
0.56
Negative
77.93
Negative
93.47
Negative
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 43.51, equal to the 50-day MA of 43.05, and equal to the 200-day MA of 42.24, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 77.93 is Negative, neither overbought nor oversold. The STOCH value of 93.47 is Negative, 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
46.50
7.69
19.81%
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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XLE
Energy Select Sector SPDR Fund
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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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