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What XLU’s Latest Volatility Trends Indicate

Vincent Kruger
What XLU’s Latest Volatility Trends Indicate

On August 10, the Utilities Select Sector SPDR ETF (XLU) had an implied volatility of 12%—close to its 15-day average. The SPDR S&P 500’s implied volatility was close to 9%, which is near its 15-day average. The implied volatility shows investors’ anxiety. Higher volatility is usually related to a fall in a stock’s price.