Why XLU Could Be the Quiet Winner of the AI Power Boom

The 2025 narrative has been dominated by the artificial intelligence (AI) boom and the impending Federal Reserve rate-cutting cycle. That's kept tech, growth, and AI beneficiaries leading the equity market higher.But it's another sector beating the S&P 500 (SNPINDEX: ^GSPC) this year that may be the most surprising of all: utilities. One of the market's most defensive groups shouldn't be outperforming when everything else is risk-on, right? But the Utilities Select Sector SPDR Fund (NYSEMKT: XLU) is an exchange-traded fund (ETF) benefiting from the utilities boom. It has about 30 holdings and "seeks to provide precise exposure to companies from the electric utilities; water utilities; multi-utilities, independent power and renewable electricity producers; and gas utility industries."Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool