Because the yield in fixed income has remained so low for so long due to the Federal Reserve maintaining low interest rates, investors have transitioned to utilities because they want dividend yields. As a sector, utilities are up 21.96% year-to-date, 24.7% over the past year and provided an average return of 15.78% per year over the past three years.
To participate, the exchange-traded fund (ETF) Utility Select Sector SPDR ETF (PACF:XLU), tracks the price and yield of the Utilities Select Sector Index. The largest holdings of XLU are as follows: Continue reading "The Hot Utilities Sector Needs Risk Management" →
In today's video, I'll be examining nine different sectors of the economy and analyzing their trends using SPDR ETFs. Out of the nine different sectors, I'll be looking at three of these sectors with strong uptrends, while the remaining six sectors are in a transition stage.
I will, of course, be applying the Trade Triangle technology to each of these nine sectors so you can clearly see how to put each of these sectors to work you.
Creating an ETF sector portfolio is easy and is not as difficult as you may imagine. The first thing you need to do is create a separate portfolio in your Portfolio Manager and enter these nine ETF symbols. Continue reading "How to Perform Serious Sector Analysis Using ETFs" →