Utilities’ Fall Echoed in Low-Volatility Funds



Market performance

The Utilities Select Sector SPDR ETF (XLU) has corrected more than 10% in the last three months while the PowerShares S&P 500 Low Volatility ETF (SPLV) has fallen nearly 7% during the same period. Utilities have lost 8% in the last two weeks.

Top utilities Duke Energy (DUK) and Southern Company (SO) were among the worst hit utilities in the recent two-week long fall. Both companies corrected 8%.


Holdings in low-volatility funds, as well as the real estate (IYR) and telecom (IYZ) sectors, also experienced tremendous weakness in the last several trading sessions. This weakness triggered the fall, and both sectors fell 8% and 3%, respectively.

Article continues below advertisement

More From Market Realist