One of the top-performing sectors YTD has been financials, with the popular financial ETF, Financial Select Sector SPDR (NYSEARCA: XLF), already up 6.5% as of Friday’s close. Conversely, one of the sectors that outperformed for the first three quarters of last year, utilities, represented by the Utilities Select Sector SPDR ETF (NYSEARCA: XLU), has lagged financials and performed in line with the benchmark S&P 500.
However, with rotation constantly occurring in the current market and capital flowing out of potentially overbought sectors and into sectors presenting more favorable risk: reward, could utilities gain flow from financials and gain a boost in the coming months?
