Investors continue to allocate money to utilities ETFs, perhaps confirming the notion that the sector’s recent struggles have gone unnoticed by some.
“XLU $300 million for instance in recent sessions despite the fund falling below its 50 day MA inside of the last two sessions,” Street One Financial Vice President Paul Weisbruch said in a note out Tuesday. “Investors have traditionally been attracted to Utility stocks as lower volatility names that have historically had attractive yields, and that still looks to be the case today as XLU’s yield for example is 3.41%.” [Chart of the Day: Utilities ETFs]
Utilities Select Sector SPDR
Tom Lydon’s clients own shares of TLT.