XLU includes a hefty 8.2% tilt toward Southern Co. and 7.6% to Dominion Resources.[related_stories]
Investors may have also increased bets into the bond-esque utilities sector as a more conservative play on the equities market, following the FBI’s renewed probe into Democratic presidential runner Hillary Clinton’s private email correspondence.
The renewed political risk weighed on American’s perception of a Clinton presidency, which dragged on the equities market and added to uncertainty.
The added equity volatility also slightly diminished bets of a Federal Reserve rate hike in December, which would further help support the bond-like utilities sector.
For more information on the utilities sector, visit our utilities category.
Utilities Select Sector SPDR