Average Daily Volume
11.55M
Fund Overview
The Utilities Select Sector SPDR Fund (XLU) is an exchange-traded fund that seeks to provide investment results corresponding to the performance of the Utilities Select Sector Index. This index includes companies from the utilities sector, such as electric, gas, and water utilities, as well as independent power producers and energy traders. XLU offers investors exposure to a segment of the market known for its defensive characteristics, stable cash flows, and dividend-paying tendencies. The fund is designed for those seeking income and lower volatility compared to the broader equity market. With a focus on essential services, utilities are often considered a core holding for conservative portfolios.
- Asset Class
-
Equity
- Industry
-
Broad Utilities
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 2.96 %
- Currency Hedged
-
No
- Portfolio Turnover
-
5 %
- Dividend Date
-
Why Invest in the XLU ETF?
Potential Benefits
- Provides exposure to the defensive utilities sector, which tends to be less volatile than the broader market.
- Offers attractive dividend yields, making it suitable for income-focused investors.
- Diversifies a portfolio with essential service providers that have stable cash flows.
- Low expense ratio compared to actively managed utility funds.
- Liquidity is high due to its large asset base and trading volume.
Potential Risks
- Interest rate sensitivity—utilities often underperform in rising rate environments.
- Regulatory risks, as utility companies are subject to government oversight.
- Limited growth potential compared to more cyclical sectors.
- Exposure to commodity price fluctuations (e.g., natural gas, electricity).
- Concentration risk, as the fund holds a relatively small number of stocks.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+1.3%
|
+10.4%
|
-3.2%
|
+2.1%
|
-5.2%
|
+2.7%
|
-2.2%
|
-4.8%
|
-5.9%
|
+1.0%
|
-
|
-
|
| 2025 |
+2.9%
|
+1.7%
|
+0.2%
|
+0.1%
|
+3.8%
|
+0.4%
|
+4.9%
|
-1.6%
|
+4.1%
|
+2.2%
|
+1.7%
|
-5.1%
|
| 2024 |
-3.0%
|
+1.1%
|
+6.6%
|
+1.7%
|
+9.0%
|
-5.6%
|
+6.8%
|
+4.8%
|
+6.6%
|
-1.1%
|
+3.8%
|
-8.0%
|
| 2023 |
-2.0%
|
-5.9%
|
+4.9%
|
+1.9%
|
-5.9%
|
+1.6%
|
+2.5%
|
-6.1%
|
-5.6%
|
+1.3%
|
+5.1%
|
+1.9%
|
| 2022 |
-3.3%
|
-1.9%
|
+10.3%
|
-4.3%
|
+4.3%
|
-4.9%
|
+5.4%
|
+0.5%
|
-11.3%
|
+1.9%
|
+7.0%
|
-0.5%
|
| 2021 |
-0.9%
|
-6.1%
|
+10.6%
|
+4.2%
|
-2.3%
|
-2.2%
|
+4.3%
|
+3.9%
|
-6.1%
|
+4.7%
|
-1.7%
|
+9.7%
|
| 2020 |
+6.7%
|
-9.9%
|
-9.9%
|
+3.3%
|
+4.2%
|
-4.7%
|
+7.8%
|
-2.6%
|
+1.1%
|
+5.1%
|
+0.7%
|
+0.6%
|
| 2019 |
+3.5%
|
+4.1%
|
+2.8%
|
+0.9%
|
-0.8%
|
+3.2%
|
-0.1%
|
+5.1%
|
+4.2%
|
-0.8%
|
-1.9%
|
+3.3%
|
| 2018 |
-3.1%
|
-3.9%
|
+3.8%
|
+2.0%
|
-1.1%
|
+2.8%
|
+1.6%
|
+1.3%
|
-0.7%
|
+2.0%
|
+3.5%
|
-4.0%
|
| 2017 |
+1.3%
|
+5.3%
|
-0.1%
|
+0.8%
|
+4.1%
|
-2.7%
|
+2.4%
|
+3.3%
|
-2.8%
|
+3.9%
|
+2.7%
|
-6.1%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
NEE
|
NEXTERA ENERGY INC |
11.9 % |
|
SO
|
SOUTHERN CO |
8.2 % |
|
DUK
|
DUKE ENERGY CORP |
7.7 % |
|
CEG
|
CONSTELLATION ENERGY CORP |
5.8 % |
|
AEP
|
AMERICAN ELECTRIC POWER CO INC |
4.7 % |
|
EXC
|
EXELON CORP |
3.8 % |
|
D
|
DOMINION ENERGY INC |
3.8 % |
|
SRE
|
SEMPRA |
3.7 % |
|
PEG
|
PUBLIC SERVICE ENTERPRISE GROUP INC |
3.5 % |
|
VST
|
VISTRA CORP |
3.4 % |
Top 10 holdings shown, out of 33 total holdings.
Related ETFs: XLU vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
XLU tracks the Utilities Select Sector Index, a market-cap-weighted index comprising utility stocks from the S&P 500. The index includes electric, gas, and water utility companies, as well as independent power producers. The fund holds all (or a representative sample) of the index components, ensuring close tracking. Rebalancing occurs quarterly to align with index changes. XLU uses a passive management approach, avoiding stock-picking in favor of broad sector exposure.
Frequently Asked Questions
Does XLU pay dividends?
Yes, XLU pays quarterly dividends, reflecting the income generated by its utility stock holdings.
How does XLU perform during market downturns?
Utilities like those in XLU tend to be more resilient during market downturns due to their stable demand and dividend payments.
What is the expense ratio of XLU?
XLU has an expense ratio of 0.10%, making it one of the lower-cost utility ETFs available.
Is XLU a good long-term investment?
XLU can be a good long-term holding for investors seeking steady income and lower volatility, though growth potential may be limited compared to other sectors.
Industry Overview
The utilities sector, represented by ETFs like XLU (Utilities Select Sector SPDR Fund), consists of companies providing essential services such as electricity, natural gas, and water. These businesses are typically highly regulated, offering stable revenue streams and consistent dividends. Investing in utilities is often seen as a defensive strategy, as demand for these services remains relatively stable regardless of economic conditions. However, the sector is sensitive to interest rate changes and regulatory shifts. XLU provides a convenient way to gain diversified exposure to this sector without selecting individual stocks.
Alternative Comparison
Compared to VPU (Vanguard Utilities ETF), XLU has a slightly higher expense ratio but offers greater liquidity and tighter bid-ask spreads. Unlike RYU (Invesco S&P 500 Equal Weight Utilities ETF), which equal-weights its holdings, XLU follows a market-cap approach, resulting in heavier allocations to larger utility firms. XLU’s physical replication strategy contrasts with some peers that may use derivatives or sampling techniques.
Issuer Overview
XLU is issued by State Street Global Advisors (SSGA), one of the largest ETF providers globally. SSGA is known for its SPDR ETF series, which includes sector-specific and broad-market funds. The firm emphasizes low-cost, passive investment strategies, making XLU an efficient way to access the utilities sector.
Conclusion
XLU is a core holding for investors seeking defensive exposure to the utilities sector. Its low cost, liquidity, and dividend focus make it a strong choice for income-oriented portfolios. However, investors should be mindful of interest rate and regulatory risks inherent in the sector. For those looking for stability and yield, XLU remains a compelling option.
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