No Surprise: Shy Away From Staples ETFs if Rates Rise

If yields fall, that would “be positive for shareholders of high dividend yielding stocks in the consumer staples and utilities sectors,” notes S&P Capital IQ.

It appears investors are not waiting around for rising yields to abate. XLP has lost almost $588 million in assets since the start of the current quarter, placing the ETF alongside its utilities counterparts as objects of investors’ repudiation.

Consumer Staples Select Sector SPDR