“The second thing is these are some of the highest dividend-yielding stocks, and in this environment of slumming growth, increased uncertainty, it’s nice to have some lifeboat stocks just in case you happen to hit a storm,” said Erin Gibbs, portfolio manager at S&P Global, in an interview with CNBC. “These two combinations are really what’s bringing investors back to these stocks when they’ve been so out of favor for so long.”
Investors have added $78.50 million to XLU this year as the fund is higher by more than 10%.
Rivals to XLU include the Vanguard Utilities ETF (NYSEARCA: VPU), Fidelity MSCI Utilities Index ETF (NYSEARCA: FUTY), iShares U.S. Utilities ETF (NYSEArca: IDU) and the Reaves Utilities ETF (NYSEArca: UTES).
For more information on the utilities sector, visit our utilities category.
