Investors are not waiting around to see what further carnage rising Treasury yields can bring to utilities ETFs. IDU has suffered almost $1.2 billion in outflows this year while, XLU, the largest utilities ETF, has bled $765.2 million. VPU looks better by comparison with just $155.1 million in lost assets, but that number is confounding considering the ETF has dropped 10.3% this year.
Still, some investors see opportunity with rate-sensitive assets such as XLU and real estate ETFs, noting that 10-year yields are overbought and sentiment against the likes of XLU is at bearish extremes, which could create opportunity from the long side with the utilities sector. [Rethinking Rate Sensitive ETFs]
Utilities Select Sector SPDR
