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The XLU Buy Thesis: Cheap And Better Growth
Seeking Alpha·2025-10-01 05:56

In the last month, the utilities sector became opportunistically cheap with strong growth and a significant price drop. We believe the Utilities Sector ETF (NYSEARCA:XLU) will substantially outperform the broader market while also providing defensive benefits in the event of a weakening economy. Last month pricing went the wrong way Utilities are generally considered an interest-rate-sensitive sector. Since they provide steady dividend income, they often compete with bonds for attention. As such, they tend ...