Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough
Utilities Select Sector SPDR XLU offers exposure to regulated utilities, diversified utilities, and unregulated power generators. XLU is a suitable satellite holding for investors seeking defensive exposure to the U.S.  Read more 

Bull Case

XLU is the most liquid utilities-sector ETF available.
The fund offers an attractive dividend yield relative to many other sectors.
Utilities companies' fundamentals have remained strong. Read more 

Bear Case

Utilities face a tough regulatory environment.
Rising interest rates can hurt the fund's performance.
Low power prices could squeeze margins. Read more 

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