Colas points out other underdog asset classes have appealed to investors this year. For example, major gold-backed ETFs saw their first month of inflows in over a year in February while the Utilities Select Sector SPDR (NYSEArca: XLU) has brought in more than $560 million this year.[Turn the Lights on to Utilities ETFs]
“While it is tempting to say that these flows are merely money chasing performance, it is equally true that capital is fleeing volatility. In less than three months, global equities have first had to address negative economic news from emerging markets and now geopolitical conflict as well. The latter, in the form of the struggles over the Crimea between the Ukraine and Russia, is certainly not at an end. It may not even be at the end of whatever beginning it may have, to paraphrase Churchill,” said Colas.
Vanguard Total Bond Market ETF
Tom Lydon’s clients own shares of SPY and LQD.