Investors went in search of yield in November and December, driving utility stocks higher in the process.
One of the attractions of the utilties sector is the dividend yield. Even with recent gains, XLU’s dividend yield remains above 4%. With an average market cap of $16 billion and projected EPS growth of 3 – 5%, utilities are drawing investors who want to generate near term income while remaining in a relatively less risky place in the investing spectrum.
XLU’s top holdings include Exelon Corp, Southern Company, Dominion Resources and FPL Group and the fund’s expense ratio is 0.21%.