Despite the EPS declines, REIT ETFs have been prime beneficiaries of declining interest rates. For example, the Vanguard REIT ETF (NYSEArca: VNQ) has surged 16% this year while pulling in $2.77 billion in new assets. [REIT ETF Ready to Surge]
VNQ is rated marketweight by S&P Capital IQ.
Insurance ETFs have among the most impressive funds at the industry. Not only have ETFs such as the SPDR S&P Insurance ETF (NYSEArca: KIE) dealt with declining, but falling interest rates as well. Remember that KIE surged 45.6% last year as 10-year Treasury yields spiked.
KIE is up 4% in the past 90 days and although it appears unlikely to offer a sequel to last year’s performance, the ETF, rated overweight by S&P Capital IQ, hit a new all-time high Wednesday.
Utilities Select Sector SPDR
