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Annual performance year to date of XLP, XLRE and XLU ETFs

Utilities, Real Estate and Consumer Staples ETFs… They are leading the entire market with annual returns of 23.28%, 19.6% and 16.5% YoY as of 6/24/2019. The only discernible metric I can identify is companies in these sectors produce consistent and predictable cash flows in the name of dividends. The big drivers of the Utilities ETF XLU are Nextera Energy and Southern Company, each accounting for 3.47% and 1.98% positive return for the entire ETF. Investors are flocking to dividend paying companies as US treasury yields collapse, specifically the 10 year crashing below 2%. Investors have a need for income and it can’t be met with historically low treasury rates.

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