Many investors are seeking exchange traded funds (ETFs) in safety stable sectors such as utilities.  Utilities are often used during corrections because they tend to be less volatile in comparison with the rest of the market with steady earnings.  Trang Ho for Investor’s Business Daily says individual investors are better off in cash during these corrections, even if utilities are more stable.

Below are the utility ETFs and their year-to-date performance:

  • S&P Select Utilities SPDR (XLU) 2.3%
  • Utilities Holdrs (UTH) 0.5%
  • iShares Dow Jones U.S. Utilities Sector Index (IDU) 1.8%
  • Vanguard Utilities (VPU) 1.9%

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.