Looking ahead, investors should monitor the electricity demand. According to the U.S. Energy Information Administration, U.S. electricity sales to the residential sector are expected to be 1.7% higher in 2014 year-over-year but fall by 0.3% in 2015. Additionally, U.S. commercial sector electricity is expected to average 0.9% higher in 2014 and grow 0.4% in 2015.
Consumer staples stocks have been the second best performers in the S&P 500. The Consumer Staples Select Sector SPDR (NYSEArca: XLP) has remained flat since the September 18 market highs. The staples sector is widely viewed as a defensive play due to its relative low volatility. [At Least Staples ETFs are Loving This Market]
The sector includes “exposure to mega-cap household names whose products consumers generally continue to buy regardless of the economic climate,” according to Morningstar analyst Robert Goldsborough.
Utilities Select Sector SPDR
For more information on the utilities sector, visit our utilities category.
Max Chen contributed to this article.