XLU down 5 % YTD vs. S&P up 4%. 9% spread ....ouch!Possible motivators:1. Investor sentiment is aligned with growth stocks, betting on strong recovery....utilities out of favor2. Inflation is more imminent to the investor than Fed speak3. Now that Health Care is signed, Obama crew will return to fight carbonStill, electricity is King. How else do you recharge all those netbooks and iPods? Industrial demand will have to pick-up first, then Utilities are off and running.
I want some yield /income and I think the utilities are a safer place to be than the S&P dividend stocks. Given the upside is more limited than the growth stocks.
Don't forget - the change in the tax law for 2011 - which will increase tax on dividends - unless congress changes the law.
leaders are at their 52 week high, investors will broaden the rally soon. After the employment numbers in April. good luck