Most investors view utilities as a reliable, income-generating asset that exhibit some bond-like characteristics. As interest rates declined, the sector appealed to many income investors for its relatively higher yields. [Crunch Time for Rate-Sensitive ETFs]
“Aylesworth admitted that the utilities are expensive, but they still look more promising than the alternatives,” adds CNBC.
Utilities traditionally trade at richer multiples relative to the broader market due to the sector’s defensive traits, but consumer staples are actually more expensive at the moment.
Utilities Select Sector SPDR
