Utilities sector ETF XLU shows strong defensive potential
The Utilities Sector ETF (XLU) has performed very well over the last year. It has returned 24%, which is significantly higher than the S&P 500's return of 8.4%. This makes XLU the best-performing SPDR sector fund. Interest in XLU is rising among investors. Utilities are seen as a safer investment option during times of economic uncertainty and high inflation. Many people believe these companies can provide stability in a slowing economy. Despite this strong performance, there is a reminder that past results do not guarantee future success. Potential investors should do thorough research before making decisions.