Investors are confirming as much this year. After being the best performer among the nine sector SPDRs last year, XLU is the worst this year with a 6.5% loss. XLP has traded modestly higher, but only to place it fifth among the nine SPDRs. The Vanguard Utilities ETF (NYSEArca: VPU) has not been anything to write home about either as it is also down more than 6%.
“S&P Capital IQ believes these sectors have underperformed the broader S&P 500 Index this year as investors have rotated out of these stable ‘bond proxies’ in anticipation of higher bond yields,” said the research firm.
Rotating out of those sectors is exactly what investors have done this year. As of May 5, investors had yanked $2.28 billion XLP, $687 million from XLU and $148.4 million from VPU. [Checking on Staples ETFs]
Last month, investors pulled a combined $533 million from consumer staples and utilities ETFs, according to State Street data.
Consumer Staples Select Sector SPDR
