Utilities stocks have also been gaining traction among yield-hungry investors, especially with benchmark 10-year Treasury bonds now yielding about 1.82%. XLU has a 3.19% 12-month yield.
Moreover, cheaper fuel prices, with natural gas futures trading shy of $3 per million British thermal units, have also cut input costs for many electricity producers. If winter conditions persist, utilities could also continue to outperform as consumers try to keep warm. [U.S. Energy Boom Energizes Utilities ETFs]
Utilities Select Sector SPDR
For more information on the utilities sector, visit our utilities category.
Max Chen contributed to this article.