State Street Utilities Select Sector SPDR ETF
XLU SectorUpdated: Jul 5, 2026, 21:17 UTC
Key Metrics
Top 10 Holdings
| Holding | Ticker | Weight | Bar |
|---|---|---|---|
| NextEra Energy Inc | NEE | 13.19% | |
| Southern Co | SO | 7.37% | |
| Duke Energy Corp | DUK | 6.94% | |
| Constellation Energy Corp | CEG | 6.52% | |
| American Electric Power Co Inc | AEP | 4.98% | |
| Sempra | SRE | 4.23% | |
| Dominion Energy Inc | D | 4.16% | |
| Vistra Corp | VST | 3.71% | |
| Entergy Corp | ETR | 3.59% | |
| Xcel Energy Inc | XEL | 3.42% |
Sector Allocation
About This ETF
The State Street Utilities Select Sector SPDR ETF (XLU) is a Sector ETF with an expense ratio (TER) of 0.08% and $22.4B in assets under management., with its largest holdings being NextEra Energy Inc, Southern Co, Duke Energy Corp. The ETF currently yields 2.68% in dividends. Year-to-date, XLU has returned +7.4%. With an expense ratio of just 0.08%, it is one of the cheapest ETFs in its category.
In seeking to track the performance of the index, the fund employs a replication strategy. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: electric utilities; water utilities; multi-utilities; independent power and renewable electricity producers; and gas utilities. The fund is non-diversified.
FAQ — XLU
What is the TER of XLU (State Street Utilities Select Sector SPDR ETF)?
XLU has a Total Expense Ratio (TER) of 0.08 % per year. That sits at the sector category median (0.08 % across 13 peer ETFs). The TER is deducted directly from the fund and lowers your effective return.
What return has XLU delivered?
Performance for XLU: YTD: +7.40 % · 3-year p.a.: +14.94 % · 5-year p.a.: +10.68 %. Over 5 years, XLU outperforms the sector category median of +6.75 % by +3.93 pp. Past performance is no guarantee of future returns.
What are the top holdings of XLU?
The five largest positions in XLU are: NEE, SO, DUK, CEG, AEP. The full holdings list is updated daily on this page.
Does XLU pay dividends?
XLU has a current dividend yield of 2.68 %. Distributing ETFs pay this out in cash; accumulating versions reinvest it inside the fund. Check the share class on your broker before buying.
Where can I buy or set up a savings plan for XLU?
XLU is available at most major brokers. For a free monthly savings plan from €1, look at Trade Republic, Scalable Capital or Flatex. The broker comparison on this site shows fees, free-savings-plan ETFs and execution exchanges side by side.
What is the Utilities Select Sector SPDR ETF (XLU)?
The Utilities Select Sector SPDR ETF (XLU) from State Street tracks the utilities slice of the S&P 500 — electric, water, gas and multi-utility companies plus independent power producers. With $24.1B in assets and an expense ratio of just 0.08%, it is the largest and cheapest pure-play utilities ETF on the U.S. market. Utilities are viewed as defensive and rate-sensitive; their stable, regulated cash flows and a 2.54% dividend yield make them appealing to income-focused investors seeking lower volatility than the broad market.
Performance and Drivers
XLU has returned 4.08% year-to-date, 15.27% over three years and 10.13% over five years (in USD, before currency effects). The price sits at $44.63, roughly 59.9% of the way between its 52-week low ($39.89) and 52-week high ($47.80).
Key drivers include the interest-rate backdrop — falling yields favour these bond-like utility names — rising electricity demand from data centres and electrification, and regulated rate adjustments. Heavyweights such as NextEra Energy (14.0%), Southern (7.31%) and nuclear-power beneficiaries Constellation Energy and Vistra heavily shape the fund’s trajectory, meaning its returns reflect the fortunes of a handful of large regulated names.
Risk Profile
XLU is invested 100% in the utilities sector and is described in fund documentation as non-diversified. This single-sector concentration means industry-specific shocks — rising rates, regulatory intervention or fuel-cost spikes — hit the entire portfolio at once.
- Interest-rate risk: Rising yields typically pressure the prices of these dividend-rich utilities.
- Concentration: The ten largest positions make up over half the fund, with NextEra alone at 14.0%.
- Currency risk: The ETF is denominated in U.S. dollars. For euro-area investors, a weaker dollar can entirely erode the USD return or reduce gains.
Who Is XLU For?
XLU suits defensively minded investors seeking steady income and a 2.54% dividend yield who deliberately want exposure to the utilities sector — for example as an income building block or a cushion during downturns. Tactical investors also use it to overweight utilities during rate-cutting cycles.
It is less appropriate as a core holding for broadly diversified portfolios, for growth-oriented investors, or for those wishing to avoid single-sector and interest-rate risk. Anyone seeking maximum diversification is better served by a broad index ETF. XLU is best understood as a complementary satellite position held over a medium-to-long horizon.
How It Compares to Peers
Among U.S. utilities ETFs, XLU competes with products from other issuers:
- Vanguard Utilities ETF (VPU): Broader, holding more mid-caps at a low expense ratio, though with lower trading volume than XLU.
- Fidelity MSCI Utilities Index ETF (FUTY): Very low cost and also broad, tracking the MSCI utilities index.
- iShares U.S. Utilities ETF (IDU): Well established, but traditionally carries a higher expense ratio than XLU.
At 0.08% in fees and $24.1B in assets, XLU offers the deepest liquidity, while VPU and FUTY appeal through broader diversification.
Where can I buy XLU?
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