EIX, ETR, NEE top chart as Utilities services gainers in Q1; CEG, NRG, VST among the losers (XLU:NYSEARCA)

Utilities Select Sector SPDR Fund ETF (XLU), which tracks the S&P 500 Utilities services sector, gained nearly 8.3% during the first quarter, outperforming the broader S&P 500 Index, which slipped nearly 4.8% during the same period.

The utilities service sector, which

XLU outperformed due to sector rotation favoring value stocks, average fund flow, and strong gains in specific utility companies.

Top gainers were Edison International, Entergy, and NextEra Energy, while Constellation Energy and NRG Energy were notable losers; Gas and Multi-Utilities sub-sectors also led gains.

Quant ratings rate XLU as a Buy based on expenses and dividends, but Seeking Alpha analysts are cautious; some expect XLU may underperform with potential price decline.