Utilities ETFs have also benefited as 10-year Treasury yields have dropped 11.4% this year. Declining Treasury yields have also helped dividend ETFs that feature heavy allocations to rate-sensitive utilities stocks.
For example, the iShares Select Dividend ETF (NYSEArca: DVY), which allocated over a third of its weight to the utilities sector at the end of the fourth quarter, is up 2.6% this year. The SPDR S&P Dividend ETF (NYSEArca: SPHD) is higher by 2%. SPHD devotes more than a quarter of its weight to utilities. [Turning the Lights on to Utilities ETFs]
Utilities Select Sector SPDR Fund
Tom Lydon’s clients own shares of DVY.