The S&P 500 Utilities sector has fallen to a record-low relative value ratio of 0.06 against the broader index. Utilities companies have never been this out of favor compared to everything else in the S&P 500.
That 0.06 ratio means for every dollar of value in the broader index, utilities represent just six cents of comparable weight.
How utilities went from darling to doormat
In 2025, utilities outperformed the S&P 500 during stretches when surging power demand, driven partly by the explosion in data center construction and AI infrastructure, made the sector look like it had real growth potential for the first time in years.
That narrative has since unraveled. Rising Treasury yields in 2026 have been the primary headwind, making the sector’s dividend yields less attractive on a relative basis.
