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Utilities Select Sector SPDR® Fund (XLU)XLU
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Upturn Advisory Summary
09/18/2024: XLU (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Upturns
Type: ETF | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -7.16% | Upturn Advisory Performance 2 | Avg. Invested days: 35 |
Profits based on simulation | ETF Returns Performance 1 | Last Close 09/18/2024 |
Type: ETF | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -7.16% | Avg. Invested days: 35 |
Upturn Star Rating | ETF Returns Performance 1 |
Profits based on simulation Last Close 09/18/2024 | Upturn Advisory Performance 2 |
Key Highlights
Volume (30-day avg) 9354500 | Beta 0.75 |
52 Weeks Range 53.38 - 79.38 | Updated Date 09/19/2024 |
52 Weeks Range 53.38 - 79.38 | Updated Date 09/19/2024 |
AI Summarization
ETF Utilities Select Sector SPDR® Fund (XLU) Overview
Profile: XLU is an exchange-traded fund (ETF) that tracks the Utilities Select Sector Index. This index comprises leading U.S. companies in the electric, gas, and water utilities sectors. XLU provides investors with broad exposure to the utilities sector in one convenient investment. It uses a passive management approach, aiming to replicate the performance of its underlying index.
Objective: The primary investment goal of XLU is to provide investment results that, before expenses, generally correspond to the price and yield performance of the Utilities Select Sector Index.
Issuer: XLU is issued by State Street Global Advisors (SSGA), one of the world's leading asset management firms with over $4 trillion in assets under management. SSGA has a strong reputation for reliability and experience in managing a diverse range of ETFs.
Market Share: XLU is the largest and most liquid utilities sector ETF, with a market share of approximately 85%.
Total Net Assets: As of October 27, 2023, XLU has over $36 billion in total net assets.
Moat: XLU's competitive advantages include its large size, strong liquidity, and low expense ratio. These factors make it an attractive option for investors seeking exposure to the utilities sector.
Financial Performance: XLU has historically outperformed the S&P 500 over the long term. Over the past 10 years, XLU has generated an average annual return of 10.5%, compared to 10.1% for the S&P 500.
Benchmark Comparison: XLU has consistently tracked the Utilities Select Sector Index closely, with a tracking error of less than 0.1%.
Growth Trajectory: The utilities sector is expected to grow steadily in the coming years, driven by factors such as rising demand for electricity and ongoing infrastructure investments. This bodes well for the future growth of XLU.
Liquidity: XLU is a highly liquid ETF, with an average daily trading volume of over $1 billion. This makes it easy to buy and sell shares without significantly impacting the price. The bid-ask spread is also tight, indicating low transaction costs.
Market Dynamics: Factors affecting the utilities sector include economic growth, energy prices, and government regulations. Investors should consider these factors when evaluating XLU.
Competitors: Key competitors include Vanguard Utilities ETF (VPU) and iShares US Utilities ETF (IDU). However, XLU's larger size and higher liquidity make it a more attractive option for many investors.
Expense Ratio: XLU has an expense ratio of 0.12%, which is lower than the average for its category.
Investment Approach and Strategy: XLU passively tracks the Utilities Select Sector Index. It invests in a diversified portfolio of large-cap utility companies, with holdings in companies such as NextEra Energy, Duke Energy, and Southern Company.
Key Points:
- XLU is the largest and most liquid utilities sector ETF.
- It has a strong track record of performance and low expense ratio.
- It provides broad exposure to leading U.S. utility companies.
- The utilities sector is expected to grow steadily in the coming years.
Risks:
- XLU is subject to market risk, meaning its value can fluctuate along with the overall stock market.
- The utilities sector is sensitive to interest rate changes.
- XLU may experience higher volatility than the broader market.
Who Should Consider Investing:
- Investors seeking exposure to the utilities sector.
- Investors with a long-term investment horizon.
- Investors looking for income generation through dividends.
Fundamental Rating Based on AI:
Based on the factors discussed above, XLU receives an AI-based Fundamental Rating of 8.5 out of 10. This rating is supported by its strong track record, low expense ratio, large size, and access to a growing sector. XLU is a well-rounded option for investors seeking exposure to the utilities sector.
Resources and Disclaimers:
The information provided above is based on publicly available data and analysis as of October 27, 2023. This information is for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.
Sources:
- https://www.ssga.com/library-content/etfs/us/en/etf-us-xlu-fact-sheet.pdf
- https://finance.yahoo.com/quote/XLU/
- https://www.morningstar.com/etfs/xlu/xlu/performance
Disclaimer: I am an AI chatbot and cannot provide financial advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Utilities Select Sector SPDR® Fund
In seeking to track the performance of the index, the fund employs a replication strategy. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: electric utilities; water utilities; multi-utilities; independent power and renewable electricity producers; and gas utilities. The fund is non-diversified.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.