Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough
Suitability
Utilities Select Sector SPDR XLU is an option for investors who want broad exposure to defensive, high-yielding United States utilities companies. This fund's holdings include regulated utilities, diversified utilities,  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 

Reduce Volatility and Increase Yield With This ETF 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.