The VanEck Vectors Gold Miners ETF (NYSEArca: GDX) surged 6.4% and VanEck Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) jumped 9.5%.
Long-term Treasury bond ETFs were also pushing higher, with the iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) up 1.0%, PIMCO 25+ Year Zero Coupon US Treasury (NYSEArca: ZROZ) up 1.5% and Vanguard Extended Duration Treasury ETF (NYSEArca: EDV) up 1.4%. Yields on benchmark 10-year Treasury bonds dipped 6 basis points to 2.54%.
The Utilities Select Sector SPDR (NYSEArca: XLU), which has traditionally weakened in face of rising rates along with fixed-income market, was also among the better performing sectors of the equities market, rising 1.6% mid-Wednesday after the Fed decision.
These asset categories that were seemingly more at risk of a rising rate environment may have been oversold prior to the Federal Reserve’s announcement, which allowed the investments to bounce back once the markets and observers gained a clearer picture on the Fed’s monetary policy.
In contrast, popular higher rate plays did not pop off. For instance, the Financial Select Sector SPDR (NYSEArca: XLF) was relatively muted in light of the rising interest rate outlook, remaining unchanged after the Fed’s decision.