Solidifying the notion that boring can be beautiful, the utilities sector and its relevant exchange-traded funds are acting like the NASDAQ of the 1990s. Well, that is hyperbole, but the Utilities SPDR (ETF) (NYSE: XLU) is up 12.5 percent year-to-date.
Utilities ETFs And The S&P
Additionally, XLU and rival utilities ETFs are, as they should be, less volatile than the S&P 500. While delivering five times the returns of the S&P 500 this year, XLU has also been 130 basis points less volatile than the benchmark U.S. equity index.
Utilities And The Fed
However, investor enthusiasm for XLU and ETFs such as the Vanguard Utilities ETF (NYSE: VPU) and Fidelity MSCI Utilities Index ETF (NYSE: FUTY) could be tested if the Federal Reserve follows through on its plans to boost interest rates ...
/www.benzinga.com/news/16/05/8027217/another-fed-test-for-utilities-etfs alt=Another Fed Test For Utilities ETFs>Full story available on Benzinga.com
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