Investors often skip over the utilities sector in favor of companies in higher-growth industries. Utilities stocks tend to be stable sources of dividend income and defensive plays. With all of the tumult in markets so far in 2025, though, the utilities sector has actually emerged as one of the most resilient sectors.
The Utilities Select Sector SPDR Fund (NYSEARCA: XLU), an exchange-traded fund (ETF) holding more than 30 of the top utilities names and a benchmark for the sector as a whole, has returned 8% year-to-date (YTD).
