XLU Shares Up 7% Year-to-Date Amid Rising Treasury Yield Concerns

The Utilities Select Sector SPDR Fund (XLU) shares are trading around $45, marking a 7% increase year-to-date and a 15% rise over the past year. The fund's performance is significantly influenced by the 10-year Treasury yield, currently at 4.6%, which pressures dividend appeal and capital costs. Major holdings like NextEra Energy (14% weight) and American Electric Power (5% weight) account for nearly 40% of XLU's net asset value. Future gains are dependent on developments in PJM’s 2027 framework decision impacting AI power deals with hyperscalers.