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The S&P 500 Utilities group looks set to exit May by further solidifying its turnaround to become a top-performing sector this year, with gains sparked by investors seeking AI investment plays.
One day before May trade ends, all 10 of the largest holdings in the Utilities Select Sector SPDR ETF (NYSEARCA:XLU) have logged advances for the month, led by a +20% surge in Constellation Energy (CEG). The S&P 500 Utilities index itself has gained ~6% this month alone and was up ~11% YTD.
The sector was the worst performing on the S&P 500 (SP500)(SPY)(IVV) earlier this year, extending that status from 2023. But it now stands as the top gainer so far in Q2, spurred by investors wanting exposure to companies supplying energy and services to run AI-related data centers that more businesses are using.
Goldman Sachs this week said it’s still bullish on the S&P 500 Utilities sector. Bank of America in a recent update said utility funds experienced the largest weekly inflow since November 2022, with a $700M haul.
Here’s how the top 10 holdings in the (XLU) ETF have fared in May through Thursday, May 30:
- NextEra Energy (NEE) – Up 16.75% Weight: 14.70%
- Southern Co. (SO) – Up 6.2% Weight: 7.86%
- Duke Energy (DUK) – Up 3.1% Weight: 7.23%
- Constellation Energy (CEG) – Up 21% Weight: 6.59%
- Sempra (SRE) – Up 3.9% Weight: 4.35%
- American Electric Power (AEP) – Up 2.5% Weight: 4.30%
- Dominion Energy (D) – Up 4.9% Weight: 4.10%
- PG&E (PCG) – Up 6.8% Weight: 3.61%
- Public Service Enterprise (PEG) – Up 7% Weight: 3.41%
- Exelon (EXC) – Up 2.3% Weight: 3.36%.
Among other utility ETFs: (PAVE), (FUTY), (FXU), and (VPU).
