Utility ETF Offers Room To Rise (XLU)

Share This Article
June 16, 2009 10:31am NYSE:XLU

utilitiesMatt Cavallaro from Forbes reports “The inflation trade is beginning to wrap its arms around equity prices for the second consecutive summer. Rising unemployment hasn’t choked off the commodity rally yet, as blistering oil prices have more than doubled from their March lows around $30 a barrel to $73. 


While risky energy stocks are entirely subject to volatile oil prices, utilities offer a low-risk way to capitalize on this summer’s impending inflation bubble.”

Matt Cavallaro continues “Trading with a strong correlation to the price of petroleum, defensive utility stocks moderate returns and losses that drastically swing cyclically sensitive sectors. Coinciding with oil’s rebound, the SPDR Utilities Select Sector ETF (amex: XLU) is up a modest 19% since March 9, compared with the S&P 500’s somewhat overdone 38% gain. From a valuation perspective within the framework of rising price pressures, the utility sector’s paced advance has left room for upside.”

We have included a snapshot of the top ten holdings listed within the ETF-XLU below:

TOP 10 HOLDINGS ( 58.48% OF TOTAL ASSETS)  
 
Company Symbol % Assets
AMER ELECTRIC POW CO AEP 4.14
DOMINION RES NEW D 5.89
DUKE ENERGY CP HL CO DUK 5.47
ENTERGY CP ETR 4.11
EXELON CORPORATION EXC 10.17
FIRSTENERGY CP FE 4.18
F P L GROUP INC FPL 7.37
PG&E CP PCG 4.57
PUB ENTRPR GP PEG 5.06
SOUTHERN CO SO 7.52

Full Story: Here


 

We ran this utility ETF through the market club software and found the following results from their chart analysis program:
 
SPDR UTIL SECTOR ETF (PACF:XLU)
Smart Scan Chart Analysis confirms that a strong uptrend is in place and that the market remains positive longer term. Strong Uptrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders.

Based on a pre-defined weighted trend formula for chart analysis, XLU scored +100 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

     
+10 Last Hour Close Above 5 Hour Moving Average
+15 New 3 Day High on Friday
+20 Last Price Above 20 Day Moving Average
+25 New 3 Week High, Week Ending June 13th
+30 New 3 Month High in June
+100 Total Score

9 "Must Own" Growth Stocks For 2019

Read Next



Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular



Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories