XLU, XLP, XLRE: A Week in Review

The Utilities Select Sector SPDR ETF (XLU), the Consumer Staples Select Sector SPDR ETF (XLP), and the Real Estate Select Sector SPDR ETF (XLRE) 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) 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 Week

XLU 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.

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