XLU: Headwinds Abound In 2023

Macrotips Trading
5.98K Followers

Summary

  • The XLU ETF is a utility-sector focused ETF.
  • It was only 1 of 2 SPDR Sector ETFs to generate positive returns in 2022.
  • Heading into 2023, I have valuation concerns on both an absolute and relative basis for utilities.
37 / 5.000ÜbersetzungsergebnisseHigh voltage pylons in the evening sun

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The Utilities Select Sector SPDR ETF (NYSEARCA:XLU) was an excellent place to hide in 2022, as utilities and energy were the only sectors that delivered positive returns. However, as we head into 2023, investors should consider several headwinds facing the XLU.

This article was written by

5.98K Followers
Author of the Macro Trends & Inflection Points Newsletter. I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the stocks that I find interesting.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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