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Why Investors Flocked to Utilities amid Broader Market Turmoil

Vincent Kruger
Why Investors Flocked to Utilities amid Broader Market Turmoil

The slow-and-steady utilities sector was the top performer yesterday when the broader markets fell ~3%, losing their 2018 gains. The Utilities Select Sector SPDR ETF (XLU), a representative of the S&P 500 Utilities, rose 2.4% on October 24. Investors tend to turn to safer utilities amid broader market tensions. Utilities tend to have higher dividend yields and stable stock price movements.