XLU

📎 Investment Objective

The Utilities Select Sector SPDR Fund (XLU) seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Utilities Select Sector Index.

✨ Key Features

• Provides exposure to the utilities sector of the S&P 500 Index
• Utilizes a passive, index-tracking investment strategy
• Low expense ratio of 0.00%
• Diversified portfolio of utilities companies

⚠️ Primary Risks

• Sector-specific risk: As a sector-focused fund, XLU is subject to the risks associated with the utilities sector, which may underperform the broader market
• Tracking error risk: The fund may not perfectly track the performance of its underlying index
• Market risk: The value of the fund's holdings may decline due to general market conditions or other factors
• Liquidity risk: The fund may experience reduced liquidity, particularly during periods of market stress

👤 Best For

XLU may be suitable for investors seeking exposure to the utilities sector as part of a diversified portfolio. It may be particularly appealing to investors with a long-term investment horizon who are comfortable with the risks associated with sector-specific investments.