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State Street Utilities ETF targets dividends and AI power demand

XLU charges 8 basis points and reported a 30-day SEC yield of 2.85% as of August 21, 2026, with NAV up 5.21% year to date through July 31, 2026.

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Utilities investors are often drawn to the sector for defensive reasons, including inelastic demand for electricity, water, and gas services and the ability of providers to pass costs to customers during inflation, according to ETF Trends.

The outlook also points to long-term growth drivers tied to the AI buildout, as tech firms’ data center expansion is expected to require significant utility investment, including power grid and transmission line upgrades.

ETF Trends highlights the State Street Utilities Select Sector SPDR ETF, ticker XLU, as a way to access utilities within the S&P 500. The article says the fund has an 8 basis point cost and a 30-day SEC yield of 2.85% as of August 21, 2026.

The outlet also notes that XLU’s NAV was up 5.21% year to date as of July 31, 2026, framing the ETF as positioned to combine portfolio defense through dividends with exposure to rising electricity demand tied to AI data centers.

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