![Why hedge buy XLU?](/analysis-quote/_next/image?url=https%3A%2F%2Fstrapi.etfinsider.co%2Fuploads%2FETF_Insider_etf_overlap_check_tool_c09b6220b5.jpg&w=750&q=75)
Why hedge buy XLU?
Hedge funds may buy XLU, which is the ticker symbol for the Utilities Select Sector SPDR Fund, for several reasons. Firstly, XLU provides exposure to the utilities sector, which is considered a defensive sector, offering stability and consistent dividend yields. Secondly, hedge funds may view XLU as a potential hedge against market volatility or economic downturns, as utility companies tend to be less sensitive to economic cycles and can provide a source of steady cash flow.