S&P 500 Utilities fund down 10% as natural gas prices surge

The SPDR Select Sector Fund Utilities XLU is down about 10% year-to-date and only invests in utility companies that are included in the S&P 500.

With gas futures surging after OPEC cut 2 million barrels per day in oil production, many investors are preparing for a winter season with an oil and gas supply crunch.

Utility companies that are already raising their utility bills ahead of the winter months to pass off higher costs to their customers are set to benefit from the rise in natural gas prices. Credit Suisse Group CS started an Outperform rating on Dominion Energy with a price target of $82 per share. Alliant Energy LNT received a Neutral rating from Credit Suisse with a price target of $58 per share.

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