XLU: My Top Summer ETF Pick

by Sam Collins | July 2, 2014 1:26 am

Utilities Select Sector SPDR ETF (XLU[1]) — This fund invests in publically traded equities in the Utilities Select Sector Index, which include electric utilities, multi-utilities, independent power producers and energy traders, and gas utilities.

XLU rose 16.6% in the first half of 2014 and currently provides a yield of 3.44%. Its gross expense ratio is 0.16%, and it is rated “three stars” by Morningstar.

Despite Tuesday’s rush to buy technology, I’ll be staying with the mid-summer strategy of buying less volatile stocks. XLU is in a solid uptrend with support at its 50-day moving average and its intermediate trendline at $42.50. My three-month target is $48 plus dividends.

XLU is a good place to park trading gains until we have a pullback or correction. As advised in today’s Daily Market Outlook[2], it may be time for traders to cash in quickly won gains. Long-term investors should remain invested with 70% equities and 30% cash.

XLU Chart
Click to Enlarge

Chart Key[3]

  1. XLU: /stock-quotes/XLU-stock-quote/
  2. Daily Market Outlook: https://investorplace.com/2014/07/daily-stock-market-news-attention-traders-take-profits-tighten-stops/
  3. [Image]: https://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: https://investorplace.com/2014/07/trade-day-utilities-select-sector-spdr-etf-xlu/
Short URL: http://invstplc.com/1xei3SR