Overview
Targeted exposure to the GICS Utilities sector — regulated electric, gas, and water utilities plus independent power producers within the S&P 500.
Top Holdings
| Ticker | Holding | Weight |
|---|---|---|
| NEE | NextEra Energy | 12.91% |
| SO | Southern Company | 7.51% |
| DUK | Duke Energy | 6.95% |
| CEG | Constellation Energy | 6.07% |
| AEP | American Electric Power | 5.06% |
| SRE | Sempra | 4.62% |
| D | Dominion Energy | 4.38% |
| PEG | Public Service Enterprise | 4.12% |
| EXC | Exelon Corporation | 3.98% |
| XEL | Xcel Energy | 3.72% |
Fund Details
Investment Thesis
Utilities are the classic defensive equity sector: regulated monopolies with predictable, government-sanctioned returns on capital and dividend yields well above the market average. The sector historically holds up far better than the broad market during recessions, since electricity demand barely changes with the economic cycle. The trade-off is interest-rate sensitivity — utility dividends compete directly with bond yields, so the sector tends to lag when rates rise. A newer structural driver has emerged in the form of surging electricity demand from AI data centres, which has meaningfully improved the growth outlook for a sector long treated as a bond proxy.
Who It's For
Income-focused and defensively positioned investors who want an above-market dividend yield with lower volatility than the broad market. XLU suits retirees and those seeking ballast against growth-heavy portfolios, as well as investors looking to participate in grid modernisation and rising data-centre power demand. Least suitable when interest rates are rising sharply.
10-Year History
| Year | Close | % Chg |
|---|---|---|
| 2016 | $48.42 | -- |
| 2017 | $52.18 | +7.8% |
| 2018 | $53.42 | +2.4% |
| 2019 | $64.18 | +20.1% |
| 2020 | $62.42 | -2.7% |
| 2021 | $70.18 | +12.4% |
| 2022 | $70.42 | +0.3% |
| 2023 | $63.18 | -10.3% |
| 2024 | $78.42 | +24.1% |
| 2025 | $84.18 | +7.3% |
| Year | Yield |
|---|---|
| 2016 | 3.42% |
| 2017 | 3.28% |
| 2018 | 3.38% |
| 2019 | 3.02% |
| 2020 | 3.18% |
| 2021 | 2.88% |
| 2022 | 2.92% |
| 2023 | 3.42% |
| 2024 | 2.88% |
| 2025 | 3.05% |
| Year | AUM | % Chg |
|---|---|---|
| 2016 | $7B | -- |
| 2017 | $7B | +0.0% |
| 2018 | $9B | +28.6% |
| 2019 | $11B | +22.2% |
| 2020 | $12B | +9.1% |
| 2021 | $13B | +8.3% |
| 2022 | $16B | +23.1% |
| 2023 | $14B | -12.5% |
| 2024 | $19B | +35.7% |
| 2025 | $23B | +21.1% |
Historical figures are ETFHub estimates modelled from asset-class return patterns and may differ from official fund records. Data as of August 2026.
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