Utility Stocks Aren't Immune to COVID-19's Impact
Utilities usually generate stable revenue, since government entities regulate the rates they charge while demand for electricity and gas typically remains relatively steady even during a recession. Utility stocks therefore tend to outperform other sectors when the economy hits a rough patch.
However, the current downturn from the COVID-19 outbreak is so challenging that it's even having an impact on utilities. That's evident in the performance of the Utilities Select Sector SPDR EFT, which has bounced around quite a bit over the past few weeks. Overall, the average utility stock has lost about 8% of its value this year and 16% from its 2020 peak.
Here's a look at why utility stocks have been under pressure.
Source Fool.com
