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Utilities Beat Broader Markets: Total Returns in 2018

Vincent Kruger
Utilities Beat Broader Markets: Total Returns in 2018

Despite the recent downtrend, utilities outperformed broader markets in 2018. Including dividends, broader utilities (XLU) have returned ~6%, while the S&P 500 has returned -8% YTD (year-to-date). Investors took shelter in defensive sectors like utilities amid the recent market turmoil due to trade war tensions. Utilities usually have higher dividend payment capabilities and steady stock price movements.