XLU: Time For Utilities

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About: Utilities Select Sector SPDR ETF (XLU)
by: Michael Wald
This article is exclusive for subscribers.
Michael Wald
Portfolio strategy, macro, bonds, utilities
Summary

In 2019, utility stocks became overbought, driving down dividend yields.

Panic selling in March drove down prices and created better dividend yields especially when compared to corporate bonds and Treasuries.

While utility stocks may still decline, now is a good time to accumulate shares in this essential industry.

For much of the past 18 months, the Utilities Select Sector SPDR ETF (XLU) has been overpriced. Investors’ fears about a slowing economy kept them buying the utility stocks driving up prices and