FUTY - JPMorgan says they are underweight U.S. markets

2023-07-10 09:17:57 ET

JPMorgan's global market strategy team said Monday that they are underweight U.S. markets, arguing that stocks are expensive with potential earnings risks. At the same time, the firm added that it doesn't believe tech will likely be a safe haven this time around like it was in the first half of the year.

Despite this generally cautious view, JPMorgan remains overweight certain sectors. This includes the utilities and consumer staples segments.

Regarding utilities, JPMorgan stated that the "sector should see less regulatory uncertainty this year; resilient earnings, peaking bond yields are supports." Meanwhile, the firm called consumer staples "one of the best performers around the last Fed hike in the cycle, lower bond yields and better relative EPS momentum should further support.”

For investors that share a similar view of the market, see below a grouping of popular utilities and consumer staples focused exchange traded funds:

Utilities ETFs:

• Utilities Select Sector SPDR Fund ( NYSEARCA: XLU )
• Vanguard Utilities ETF ( NYSEARCA: VPU )
• Fidelity MSCI Utilities Index ETF ( FUTY )
• iShares U.S. Utilities ETF ( IDU )

Consumer Staple ETFs:

• Consumer Staples Select Sector SPDR Fund ( NYSEARCA: XLP )
• Vanguard Consumer Staples ETF ( NYSEARCA: VDC )
• iShares U.S. Consumer Staples ETF ( IYK )
• First Trust Consumer Staples AlphaDEX Fund ( FXG )

For further details see: