Utilities Stocks Are Now Top-Performing US Equity Sector In 2024
Market sentiment has recently shifted to prioritize defensive equity sectors. The attitude adjustment has lifted utilities shares, which are now outperforming the rest of the field as the top-performer, based on a set of sector ETFs through Tuesday’s close (Sep. 10).
The Utilities Select Sector SPDR Fund (XLU) is up a sizzling 23.6% year to date. That’s well ahead of the broad market’s 16.2% rise, based on the SPDR S&P 500 ETF (SPY). XLU’s rally this year is also comfortably above the second-best sector performer: financials (XLF), which is posting a strong 19.2% advance. The bottom performer is energy (XLE) with a comparatively weak 3.2% increase for 2024.