Should You Invest in the State Street Utilities Select Sector SPDR ETF (XLU)?

Core Viewpoint - The State Street Utilities Select Sector SPDR ETF (XLU) is a leading option for investors seeking broad exposure to the Utilities sector, offering low costs, transparency, and tax efficiency [1][2]. Fund Overview - XLU is a passively managed ETF launched on December 16, 1998, with assets exceeding $21.88 billion, making it the largest ETF in the Utilities - Broad segment [3]. - The fund aims to match the performance of the Utilities Select Sector Index, which represents the Utilities sector of the S&P 500 Index [3]. Cost Structure - XLU has an annual operating expense ratio of 0.08%, making it the least expensive option in its category [4]. - The ETF offers a 12-month trailing dividend yield of 2.71% [4]. Sector Exposure and Holdings - The ETF is fully allocated to the Utilities sector, providing 100% exposure [5]. - Nextera Energy Inc (NEE) constitutes approximately 12.89% of total assets, with the top 10 holdings representing about 59.05% of total assets under management [6]. Performance Metrics - The ETF has returned approximately 14.86% year-to-date and 16.4% over the past year, with a trading range between $36.545 and $46.45 in the last 52 weeks [7]. - XLU has a beta of 0.67 and a standard deviation of 16.23% over the trailing three-year period, indicating medium risk [7]. Investment Alternatives - XLU holds a Zacks ETF Rank of 2 (Buy), indicating strong potential for investors seeking Utilities/Infrastructure exposure [8]. - Other alternatives include Fidelity MSCI Utilities Index ETF (FUTY) and Vanguard Utilities ETF (VPU), with respective assets of $2.13 billion and $7.75 billion [9].