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XLU, XLP, XLRE: A Week in Review

The Utilities Select Sector SPDR ETF (XLU A), the Consumer Staples Select Sector SPDR ETF (XLP A), and the Real Estate Select Sector SPDR ETF (XLRE A-) each posted gains over the past week. The moves came during a stretch when the information technology(IT)  sector dropped 5.8% last Friday and the Nasdaq-100 fell 4.8%, per MarketWatch reporting.Key Takeaways: XLRE gained 3.4% over the past week, the strongest result of the three funds. XLU holds $22.4B in assets but posted just a 0.20% five-day return. SJM rose nearly 12% last week, the biggest individual mover across all three funds. Last Friday was rough across much of the market. More than half of S&P 500 stocks finished lower, and 65 of them fell at least 5%, per MarketWatch. Chip makers took the hardest hits, with Micron Technology, Inc. (MU) dropping 13% and the iShares Semiconductor ETF (SOXX B) shedding 10.4% on the day. Each of those three sector funds was among the exceptions. XLRE posted the strongest five-day gain of the three, adding 3.4% last week, per ETF Database. Its 31 holdings are concentrated in REITs and property management companies within the S&P 500, excluding mortgage REITs. REITs are companies that own or manage income-producing real estate, according to State Street. BXP Inc. (BXP) rose 8.8% last week, and Camden Property Trust (CPT) added 8.8%. Public Storage (PSA), carrying a 4.6% weight in the fund, climbed 7.9%, according to State Street. XLRE holds $7.9 billion in assets. Consumer staples was one of the few S&P 500 sectors that ended Friday in positive territory, rising 1.6% on the day, per MarketWatch. XLP tracks 36 of those companies and posted a five-day return of 2.8%, managing $14.2 billion in assets, per ETF Database. Some of the week’s biggest moves came from smaller positions in the fund. JM Smucker Co. (SJM) rose 11.9%, and the Clorox Company (CLX) added 9.9%. Procter & Gamble Co. (PG), carrying a 7.3% weight in the fund, climbed 5.6%, according to State Street.XLU's Measured WeekXLU is the largest of the three, holding $22.4 billion in assets, per ETF Database. The fund holds 31 stocks and covers electric, gas, water, and renewable utility companies within the S&P 500, according to State Street. See more: VIDEO: ETF of the Week: XLU Its five-day return sits at 0.2%, per ETF Database. Among its top-performing holdings last week, Pinnacle West Capital Corp. (PNW) rose 3.9%.+ Southern Co.+ (SO) gained 2.7%, and Consolidated Edison, Inc. (ED) added 2.5%, according to State Street. May’s strong employment report raised the prospect of a Federal Reserve rate increase, per MarketWatch. Rate-sensitive sectors like utilities tend to face more pressure in that environment, which may keep XLU’s near-term returns measured. All three funds track separate corners of the S&P 500 and each carry a 0.08% expense ratio, per State Street. For more news, information, and analysis, visit our Sector Investing Content Hub.

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