What XLU’s Current Volatility Trends Indicate



Implied volatility

On May 18, the Utilities Select Sector SPDR ETF’s (XLU) implied volatility was 12%—lower than its 15-day average. The SPDR S&P 500’s implied volatility was close to 10%—lower than its 15-day average of 11%.

The implied volatility denotes investors’ anxiety. Higher volatility is usually related to a fall in a stock’s price.

XLU iv

On May 18, NextEra Energy’s (NEE) implied volatility was ~15%, while Duke Energy (DUK) stock had a similar implied volatility. SCANA (SCG) and NRG Energy (NRG) were among the few most volatile S&P 500 utilities stocks last week. SCANA’s implied volatility was 40%, while NRG Energy’s implied volatility was 27%.

To learn more about utilities’ current performance and how they’re placed for the future, read Top 10 S&P 500 Utilities by Market Capitalization.

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