Investors may consider looking into to financial and energy sector ETFs as the Federal Reserve raises benchmark interest rates.
According to Kensho data, since 2008 when the 10-year Treasury note yields increased 25 basis points or more over a span of 30 days, the financial and energy sectors tend to beat the rest of the stock market, CNBC reports.
Specifically, the Financial Select Sector SPDR (NYSEArca: XLF) returned an average 3.1% over a one-month span when rates were rising while the Energy Select Sector SPDR (NYSEArca: XLE) gained an average 2.8%.
Kensho data also revealed that consumer discretionary and technology stocks also increased 2.3% and 2.0%, respectively, over the 18 instances when the 10-year Treasury note yields increased 25 basis points or more over a span of 30 days since 2008.