UTG - January Utility Review
Utility stocks went from the best December performer to the worst January performer to start the year. The Utilities Select Sector SPDR ETF (XLU) trailed the SPY by over 450bp, and it trailed its closest sector, the Health Care Select Sector SPDR ETF ([[XLV]]), by 133bp.
Exhibit 1
(Source: FactSet)
Interest rates didn’t help utilities that much during the month, as the rate on the 10-year US Treasury only fell 5bp in January.
Exhibit 2
(Source: FactSet)
Investors also seemed to be making a slight shift away from utilities, as the assets in