XLU - XLU IDU And Utilities: Worst Time In A Decade To Buy

• Utilities have traditionally been an attractive place for income-oriented investors with their stable and generous dividends.
• However, their dividends need to be interpreted under the context of risk-free rates.
• The 10-year Treasury rates just surged above 2.15% for the first time since July 2019.
• The yield spread between utilities ETFs (such as XLU and IDU) and risk-free rates is currently near their thinnest level in a decade.
• Our market sector dashboard shows that the small-cap and the energy sector are more attractive compared to their historical spectrum.

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