The Week

XLU.US lost 3.04% this week, closing at $41.10 and underperforming the S&P 500 by roughly 2.96 percentage points, as the broad benchmark slipped just 0.08%. The selling was steady: the fund opened Monday at $42.38 and touched an intraday high of $42.44, then drifted lower in each of the following four sessions. Friday’s low of $41.08 matched the 60-day range low. Daily turnover ran about 19.6% above the 60-day median.

Sector News

Utilities took the brunt of a rate-driven sell-off this week. Treasury yields tested multiyear highs, which weighed on the bond-like sector, and most US sector ETFs closed lower on Friday. Among constituents, NextEra Energy reaffirmed 2026 guidance at the top end of its range, and Evercore ISI rated it a buy, while Morgan Stanley trimmed its price target and cut Sempra Energy’s target to $100. Dominion Energy, Southern, AEP, Vistra and Xcel all logged sessions where they underperformed competitors.

The Week Ahead

The macro calendar is light. Tuesday brings the Richmond Fed composite index; Thursday includes initial jobless claims, new home sales and EIA natural gas storage. For utilities, Treasury yield direction remains the key swing factor: if yields keep testing highs, the sector could stay under pressure; a pullback in rates would ease that drag.

In Short

XLU.US diverged sharply from the broader market this week as rising yields squeezed utilities and individual constituents lagged peers. The fund slipped to its 60-day range low, with a dividend yield near 2.91%. The latest daily flow snapshot shows large-lot money leaning net seller, though this is a single-day reading rather than a weekly trend. Yield direction and sector relative strength are the two things to watch next week.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.