Select Sector SPDR ETF.## Featured ReadsOur top personal finance-related articles today. Your wallet will thank you later.[Joey Frenette]| 3 minutes ago## If you have over $100k saved and afraid to invest, Suze Orman says do this today[Maurie Backman]| 34 minutes ago## Ramsey's "No Credit Score Needed for Success" Is Only A little Correct## Continue Reading## 3 Safety-First ETFs to Retire in Comfort[David Moadel | Feb 9, 2026 at 9:22 AM EST When you're in or near your retirement years and safety becomes pri ...

Core Viewpoint - U.S. consumer confidence has sharply declined, reaching its lowest level since 2014, driven by concerns over personal finances and the overall economy [1][2]. Consumer Confidence Index - The Conference Board reported a significant drop in the consumer confidence index, which fell by 9.7 points to 84.5 in January, with all five components of the index deteriorating [2]. - Consumers' assessment of current economic conditions decreased by 9.9 points to 113.7 [2]. Economic Expectations - Short-term expectations regarding income, business conditions, and the job market fell by 9.5 points to 65.1, marking the 12th consecutive month below the 80 threshold, often seen as a recession warning [3]. Factors Affecting Sentiment - Survey respondents highlighted inflation pressures, particularly from rising gas and grocery prices, as well as concerns related to tariffs, trade, politics, jobs, and health insurance [4]. - The perception of job availability has worsened among consumers during the month [4]. Job Market Insights - The U.S. economy added only 584,000 jobs in 2025, significantly lower than the over 2 million jobs added in 2024, marking the weakest job growth year outside a recession since 2003 [5]. Economic Growth Dynamics - Despite declining consumer confidence and hiring, the U.S. economy continues to expand, primarily driven by strong consumer spending, particularly from wealthier individuals [6]. Consumer Spending Distribution - Approximately 59% of consumer spending is now attributed to the top 20% of income earners, a near-record high, while only 41% comes from the bottom 80%, a record low [7]. Investment Opportunities in ETFs - In light of recession fears and weakening consumer confidence, several exchange-traded fund (ETF) areas are highlighted for potential investment [8]. Defensive Sectors - Historically, the consumer staples sector tends to outperform during periods of low confidence, as these goods are non-cyclical. Utilities and healthcare are also considered recession-resilient sectors [9]. - Notable ETFs in the defensive segment include State Street Consumer Staples Select Sector SPDR ETF (XLP), State Street Health Care Select Sector SPDR ETF (XLV), and State Street Utilities Select Sector SPDR ETF (XLU) [10]. Quality Stocks - Quality stocks, characterized by strong balance sheets and stable earnings growth, tend to perform well during market volatility. Examples include BetaShares S&P 500 Equal Weight ETF (QUS) and Invesco S&P 500 Quality ETF (SPHQ) [11]. Dividend ETFs - High-income ETFs are seen as a safe haven in volatile markets, with a focus on dividend yields. The Vanguard High Dividend Yield ETF (VYM), yielding 2.36% annually, is highlighted as a viable option [13].

Core Insights - The Q4 earnings season is expected to shift investor focus from macroeconomic factors to corporate earnings releases as reporting accelerates [1] - Corporate earnings expectations have improved, with estimates trending higher, indicating a potential for strong performance [2] Revenue Growth Expectations - Total S&P 500 earnings for Q4 are projected to increase by 7.9% year-over-year, driven by an 8.2% rise in revenues [3] - Seven out of 16 sectors in the S&P 500 are anticipated to experience a decline in earnings, while only two sectors are expected to see revenue declines [3] Sector-Specific Revenue Growth - **Construction**: Expected revenue growth of 17.8% in Q4, following 1.5% growth in Q3, with a projected annual growth to $1.27 trillion by 2025 [5] - **Technology**: Anticipated revenue growth of 16.3% in Q4, up from 15.5% in Q3, supported by strong economic fundamentals [6] - **Aerospace**: Projected revenue growth of 12% in Q4, down from 14.6% in Q3, benefiting from geopolitical tensions and a growing space sector [7] - **Finance**: Expected revenue growth of 9.4% in Q4, following 8.4% growth in Q3, driven by increased investment banking fees and favorable market conditions [8] - **Utilities**: Anticipated revenue growth of 9.4% in Q4, up from 7.6% in Q3, as demand for electricity surges due to AI-driven data center construction [9] Conclusion - Revenue growth is considered a more reliable indicator of a company's strength compared to earnings, as sales figures are less susceptible to manipulation [4][10] - The construction and technology sectors are leading in revenue growth for Q4, with specific ETFs like PAVE and XLK highlighted for potential investment [10]

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].

Core Insights - The utility sector has experienced a decline, with the State Street Utilities Select Sector SPDR ETF (XLU) trading over 9% below its yearly high [1] Group 1: Market Performance - The utility sector has not performed well in recent months, indicating potential challenges within the industry [1] Group 2: Investment Opportunities - The best profit opportunities in individual stocks are often found in those that are less widely followed or do not accurately reflect current market opportunities [1]