Utilities ETF (XLU) Hits New 52-Week High
But are there more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
XLU in Focus
The underlying Utilities Select Sector Index seeks to provide an effective representation of the Utilities sector of the S&P 500 Index. The product charges 8 bps in annual fees.
Why the Move?
The utility sector has been an area to watch lately, given investors' drive toward safety in defensive investments, given uncertain trade policies. Being a low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or safe haven amid economic or political turmoil.
More Gains Ahead?
XLU may continue its strong performance in the near term, with a positive weighted alpha of 16.73 (as of Barchart.com), which gives cues of a further rally.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Utilities Select Sector SPDR ETF (XLU): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
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Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
