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 U.S. utilities companies. This fund's holdings include regulated utilities, diversified utilities, and unregulated   Read more 

Bull Case

XLU is the most liquid utilities-sector ETF available.
The fund offers an attractive, stable 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 

Strategic Beta: Investment Fad or Opportunity? 
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