March 2019 Utility Review

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About: Utilities Select Sector SPDR ETF (XLU), Includes: BUI, FUGAX, FUTY, FXU, GUT, IDU, JHMU, NI, NRG, PPL, RYU, SDP, UPW, UTG, VPU, VST
by: Robert Howard, CFA
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Robert Howard, CFA
Utilities, energy, Research Analyst, CFA
Summary

XLU outperformed the S&P 500 by almost 100bp in March.

Declining interest rates and investor fears of an inverted yield curve provided nice tailwinds for the group.

XLU and its P/E ratio are at record highs, so protection in a downturn may not be as much as expected.

Sector Stock Performance

March was a decent month for the utility group, with the Utility Select Sector SPDR ETF (XLU) up 2.8%. This was the second straight month of outperforming the S&P 500,