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How Volatility Has Trended in Utilities Recently

Vincent Kruger
How Volatility Has Trended in Utilities Recently

On September 21, the Utilities Select Sector SPDR ETF (XLU) had an implied volatility of 13%, marginally higher than its 15-day average. A stock’s implied volatility represents investors’ unease. Rising volatility is generally related to a fall in a stock’s price.