Everyone is likely familiar with the fanfare that “Yield” oriented equity ETFs have generated over the past two years thanks to inflows by portfolio managers amid Fed actions and the current landscape, and these names are under significant pressure this week.
In XLU for example, one can look at a multi-month chart and see severe gaps down in the past since May, only to be met by quick reversals as investors have typically re-entered the market and bid the names back up after downdrafts.
Other ETFs that will likely see increased activity in this recent equity turmoil include VPU (Vanguard Utilities, Expense Ratio 0.14%), IDU (iShares U.S. Utilities Sector, Expense Ratio 0.48%), FXU (First Trust Utilities AlphaDEX, Expense Ratio 0.70%), VNQ (Vanguard REIT, Expense Ratio 0.10%), and AMJ (JP Morgan Alerian MLP ETN, Expense Ratio 0.85%) to name just a few.
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