However, all three have been hampered since mid-May, when the 10-year Treasury yield started to rise toward the 3% mark. High-yield and other defensive sectors were battered, and still remain somewhat weak as the 10-year sits around 2.7%.
Specifically, the Utilities SPDR (XLU), the Consumer Staples SPDR (XLP) and the Vanguard Telecommunications Services ETF (VOX) all posted negative returns in May, and are down a respective 6%, 5.9% and 3.4% since the middle of that month.
So is there any rebound potential in this bloody, battered group? We’ll take a look at each sector — and its representative ETF — and decide whether it’s worth jumping in at this point. (Though with a big caveat that any Fed decisions on its QE policy could have a huge impact on all three of these funds in the coming quarters.)