Many of last year’s top-performing exchange traded funds are the laggards so far in 2012 and utilities ETFs are a prime example of the reversal.
Utilities Select Sector SPDR (XLU) was down 3.4% year to date as of Jan. 23, compared with a 4.8% gain for the S&P 500, according to Morningstar. The fund rose nearly 20% in 2011 as investors flocked to more stable sectors and dividend payers. [Utilities ETFs Fall as Investors Embrace Riskier Sectors]
The utilities ETF has dipped below its 50-day moving average after ending 2011 on a high note. The fund saw volume spike on Monday, a signal that investors may be rotating away from the utilities sector following a strong run.
Utilities Select Sector SPDR has experienced notable outflows over the past week, according to ETF Channel.