Utility-sector ETF on track for biggest weekly drop in more than two years
The largest exchange-traded fund to track the utilities sector was little changed on Friday, though it was on track for its biggest weekly percentage decline in more than two years. The Utilities Select Sector SPDR ETF is down 4.7% thus far this week, its biggest weekly drop since September 2015, as well as its third straight weekly decline. On Tuesday, the ETF fell below its 200-day moving average for the first time since February. That closely watched level is widely seen as a negative sign for long-term momentum. The fund has lost 7.3% thus far this month, and recent selling has come after the Federal Reserve raised interest rates for the fourth time this year. The sector is considered a "bond proxy" for investors, in that it pays a higher dividend than the overall market and it tends to have more stable growth rates. However, with interest rates rising, the equity sector becomes less appealing to some investors than bonds themselves. The fund rose 0.1% on Friday, compared with the 0.2% decline in the S&P 500 , which is nonetheless on track for a weekly rise of 0.2%.
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