State Street Utilities Select Sector SPDR ETF

XLU

Market cap $24.4B

Market sentiment appears overly defensive in certain areas, suggesting potential mispricing in risk assets. The analysis highlights top-tier BDCs, focusing on dividend yields, price/NAV, leverage, and credit quality. Main Street Capital (MAIN), Capital Southwest (CSWC), and Ares Capital (ARCC) offer strong yields with varying risk profiles.

Sector investing — it's a typical strategy for advisors if their clients are looking beyond broad market exposure by targeting a specific sector. The concept is fairly straightforward, but implementing the strategy is not as simple as it sounds.

History shows that midterm election years aren't always great years for the S&P 500.

This Major Market Rotation Just Handed Dividend Investors A Huge Gift

Designed to provide broad exposure to the Utilities - Broad segment of the equity market, the State Street Utilities Select Sector SPDR ETF (XLU) is a passively managed exchange traded fund launched on December 16, 1998.

The State Street Utilities Select Sector SPDR ETF (XLU) faces a policy shift as the EPA rescinds the 2009 endangerment finding, impacting coal plant retirements. Surging electricity demand, driven by AI infrastructure and data centers, challenges the feasibility of phasing out coal generation as previously planned. Coal-friendly policies are a net negative for IPPs like CEG and VST, but largely neutral for regulated utilities such as NEE, SO, DUK, D, and AEP.

The Utilities Select Sector SPDR Fund (NYSE:XLU) generates income by holding dividend-paying utility companies and passing those dividends to shareholders.

One 7% yielding monthly-paying investment is trading at one of its widest discounts in years. The other quietly yields over 9% and has been growing its payout for five years in a row. While I like both, they also come with risks to keep in mind.

Entergy: The Earnings Base Continues To Move Higher

Energy, basic materials, and defensive consumer stocks are in. Tech and financials are out.