Yahoo Finance | Is This ETF the Safest Way to Benefit From AI?
Is This ETF the Safest Way to Benefit From AI?
Every major AI buildout has needed one thing before the servers could run: reliable power. The electricity grid is the binding constraint on how fast AI can scale, making utilities one of the most structurally important beneficiaries of the AI era, even if the sector rarely gets mentioned alongside Nvidia (NASDAQ:NVDA) or Microsoft (NASDAQ:MSFT).
The Utilities Select Sector SPDR Fund (XLU) is a passive, index-tracking ETF giving investors concentrated exposure to U.S. regulated utilities. The fund holds over 99% of its portfolio in utilities stocks across 35 holdings, with zero allocation to technology, financials, or any other sector. It launched in December 1998, manages $24.4 billion in assets, charges a 0.08% expense ratio, and yields 2.61% in dividends. Regulated utilities earn predictable, government-approved returns on grid infrastructure. Rate cases, not market competition, determine their revenue. XLU is a way to own the pipes that AI must flow through and collect income while the infrastructure gets built.
Read more: https://finance.yahoo.com/sectors/energy/articles/etf-safest-way-benefit-ai-111010220.html
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