The Sector Wall Street Calls ‘Defensive’ Has Quietly Outpaced Both Inflation and the 10-Year Treasury for Almost Two Decades Running

3 hours ago 3

John Seetoo

Tue, May 19, 2026 astatine 9:53 AM CDT 6 min read

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State Street Utilities Select Sector SPDR ETF (XLU) has outperformed the US 10-year Treasury enslaved and ostentation successful 13 of the past 20 years with a 4-star Morningstar rating, $22.6 cardinal successful assets, a 2.54% yield, and 10-year trailing instrumentality of 10.27%.
Surging planetary energy request driven by A.I. information centers (17% of 2025 consumption), electrical vehicles, and Trump medication mandates for vigor self-sufficient facilities are transforming utilities from antiaircraft stocks into assertive maturation plays, portion utilities ETF dividends look favorable taxation attraction compared to bonds.
The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Utilities Select Sector SPDR Fund wasn't 1 of them. Get them present FREE.

As past has proven, markets spell successful cycles. There are bullish ascents up and bearish descents down. When they spell up, everyone is buoyant due to the fact that of the insubstantial gains they are making. When the other happens, panic follows, and determination is the proverbial “flight to safety” towards precious metals, bonds, oregon “defensive sector” stocks. The “defensive” class features industries which supply indispensable products and services that are successful request 24/7 and person nary season. Some examples are energy, water, food, and medicines.

When “the formation to safety” rears its head, blimpish investors whitethorn place antiaircraft stocks successful favour of the locked successful income output that bonds committedness - and that whitethorn beryllium to their detriment. There is simply a antiaircraft ETF that has some outperformed the US 10-year Treasury enslaved arsenic good arsenic stayed up of ostentation for 13 of the past 20 years, and volition apt see 2026 arsenic well, based connected existent trends: The State Street Utilities Select Sector SPDR ETF (NYSE: XLU).

State Street Utilities Select Sector SPDR ETF

Utilities companies make energy from hydrocarbons and renewables for the grid.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Utilities Select Sector SPDR Fund wasn't 1 of them. Get them present FREE.

Launched connected December 16, 1998, XLU was designed to way the S&P 500’s Utilities Select Sector Index. Focused connected electric, water, and state utilities, XLU besides includes companies progressive with renewables arsenic well. It contains 31 antithetic stocks. XLU has a 4-star wide Morningstar rating. Other details include:

Net Assets	$22.6 billion	Expense Ratio	0.08%
Yield	2.54%	YTD Return	3.48%
Average Daily Vol.	24.67 cardinal shares	1-yr. trailing return	22.06%
NAV	$44.91	3-yr. trailing return	14.17%
52-week range	$39.58-$47.80	5-yr. Trailing return	10.31%
Beta	0.58	10-yr. trailing return	10.27%