Utilities ETF Powers On

In late October, the ETF Professor recommended taking a look at the Utilities Select Sector SPDR ETF (NYSE: XLU as an earnings play. Since then, XLU has gained nearly 10% and it's definitely time to consider the ETF as a portfolio addition to play defense with.

With emerging markets and select commodities looking a bit tired, investors may start to prize conservative dividend payers and that means utilities could see a boost.

Unglamorous, unloved and unexciting, utilities are a compelling investment for conservative income seekers that want a higher return than what can be had with money markets and Treasuries with not much more risk.

XLU's top holdings include Exelon (NYSE: EXC), Dominion Resources (NYSE: D) and FPL Group (NYSE: FPL). XLU has an expense ratio of just 0.22% and a tidy 4.24% yield.