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Comparing Utilities and Broader Markets’ Implied Volatility

Vincent Kruger
Comparing Utilities and Broader Markets’ Implied Volatility

Recently, broader markets witnessed higher implied volatility compared to utilities. On November 23, the implied volatility of the Utilities Select Sector SPDR ETF (XLU) was close to 16%—higher than its 15-day average volatility. At the same time, the S&P 500 had an implied volatility of 18%. Generally, broader markets’ implied volatility levels are lower than utilities at large.