According to data from CXO Advisory, the Utility sector, one of the most historically defensive stock market sectors, becomes a lot more volatile in the summer months. Since the SPDR sector ETFs launched back in 1999, the Utilities SPDR (ETF) XLU 0.86% has been the best-performing sector ETF in the months of June, August and September and the second worst-performing ETF of July.
June is a historically weak month for the S&P 500, and the XLU is the only sector ETF that has averaged an overall gain in the month since 1999.
Surprisingly, the XLU transitions to the second-worst sector ETF in July.
Once August rolls around, the XLU really starts to shine and is the top-performing sector ETF once again in both August and September.
But before traders get too excited about going long on Utilities through the end of September, it’s…
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