Those ETFs kicked those losses to the curb Wednesday as XLU climbed almost 3%, a big move for a utilities fund, on volume that was nearly triple the daily average. IDU and VPU also each gained about 3%. VPU is the cheapest utilities ETF with an annual expense ratio of 0.14% while XLU is the largest with $5.34 billion in assets under management.
For now, it looks like the Fed has given conservative income investors the green light to return to one of their favorite sectors without the threat of capital losses at the hands of rising interest rates.
Utilities Select Sector SPDR
ETF Trends editorial team contributed to this post.