“The Dow Jones Utility Average (DJUA) topped in January 2015 after a long uptrend and lost ground into September when it bottomed out at $540. A higher December low set the stage for a strong 2016 recovery wave that reached the prior high in March. The instrument consolidated at that level for three months and broke out, reaching an all-time high at $724 in July,” reports Investopedia.
The $703.2 million iShares U.S. Utilities ETF (NYSEArca: IDU) tracks the Dow Jones U.S. Utilities Index.
The bond-esque utilities sector has also weakened alongside the fixed-income market as Treasury yields rose on the Fed outlook and inflationary pressures.
For more information on defensive ETFs, visit our defensive ETF category.