The utilities sector has emerged as the top-performing sector within the S&P 500 so far in 2024.
As of Sept. 11, the Utilities Select Sector SPDR Fund (NYSE:XLU) has surged 22% year-to-date, outpacing all other sectors and even surpassing the technology sector – tracked by the Technology Select Sector SPDR Fund (NYSE:XLK) – by 9 percentage points.
This marks a significant turnaround for utilities, which trailed tech by 40 percentage points in 2023.
Chart: Utilities Sector Outperforms S&P 500, Tech Stocks In 2024
Image: Benzinga Pro
The Drivers Behind The Utility Sector Surge
The robust performance of utilities stocks in 2024 has caught many investors by surprise, especially given the broader market’s focus on growth sectors like technology in recent years.
“There is an undeniable defensive undertone here, as defensive stocks like utilities and consumer staples are leading the charge. The ...
