Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough
Suitability
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 

First Name
Last Name
Email Address
Zip Code
Create Password
Verify Password
(6-15 characters; case sensitive)

Craftsmanship Needed for These Investment Styles 
Watch more 

Premium Membership

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