Utilities XLU Rebounded 2.98%

Tuesday saw a defensive rotation. Utilities XLU rebounded against its 3M downtrend and set the tone.

Utilities rallied, small caps lagged

Movers

Leaders: Utilities XLU +2.98% (3M: -8.6%), Consumer Discretionary XLY +1.18% (3M: -2.9%)

Laggards: South Korea EWY -2.64% (3M: +2.0%), Russell 2000 IWM -0.72% (3M: -3.9%)

3M Leaderboard

Strong: Brazil EWZ +25.0%, Copper Miners COPX +18.1%, Energy XLE +15.3%

Weak: Utilities XLU -8.6%, Real Estate XLRE -6.1%, S&P SmallCap Growth SLYG -4.9%

Credit outperformed, muni weakness deepened

Movers

Leaders: EM Sovereign Bonds EMB +0.68% (3M: -3.7%), High Yield Bonds JNK +0.39% (3M: -1.5%)

Laggards: Muni Bonds MUB -0.10% (3M: -4.7%), Short TIPS VTIP +0.06% (3M: -0.6%)

3M Leaderboard

Strong: Short TIPS VTIP -0.6%, Short Corporate VCSH -0.6%, Global Bonds BNDX -1.3%

Weak: Long Treasuries TLT -7.3%, Muni Bonds MUB -4.7%, Investment Grade Credit LQD -3.9%

Infrastructure themes led, biotech and crypto lagged

Movers

Leaders: Clean Energy ICLN +1.45% (3M: -7.9%), Infrastructure PAVE +1.00% (3M: -2.5%)

Laggards: Biotechnology IBB -2.34% (3M: +3.4%), Ethereum Trust ETHA -0.65% (3M: +54.8%)

3M Leaderboard

Strong: Ethereum Trust ETHA +54.8%, Bitcoin Trust IBIT +37.6%, Gold Miners GDX +20.0%

Weak: Clean Energy ICLN -7.9%, Global REITs REET -6.3%, Real Estate VNQ -6.3%

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Romain Gandon
CEO, Quantlake

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Past performance is not indicative of future results.