Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Portfolio Strategies
    • Retirement Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Leveraged & Inverse ETF Channel
  2. Play the Utilities Sector as Recession Signals Loom
Leveraged & Inverse ETF Channel
Share

Play the Utilities Sector as Recession Signals Loom

Ben HernandezJul 08, 2022
2022-07-08

Recession or no recession, demand for utilities will continue, making them a prime option in times of economic uncertainty such as now. Traders can also play the steadiness of the utilities sector with leveraged exchange traded funds (ETFs) from Direxion Investments.

Trading utilities can also provide a hedge against a volatile stock market, which investors know well after a rocky first half of 2022. When recession fears strike, a steady utility sector can help during risk mitigation, given its ability to help mute stock market downturns.

Quite simply, no matter what the stock market is doing, the lights need to stay on.

“Utilities provide services to nearly every home and business in the United States, supplying them with electricity, natural gas and water,” Forbes Advisor noted. “These heavily regulated companies are among the largest and most stable equity investments available in the stock market.”

The sector has also proven its mettle, according to a MarketWatch article. Aside from energy, which has fared the best so far this year, utilities came in second.

“The energy sector has fared best, aided by the 31% increase in oil prices. However, it hit its own bear market in the past month amid recession fears and a pullback in crude,” the article said. “But the utilities sector has shined again, while featuring a weighted estimated annual dividend yield of 3.13%, based on consensus estimates among analysts polled by FactSet.”

Play the Utilities Sector as Recession Signals Loom

Steady as Utilities Go

The S&P 500 is down roughly 20% so far this year. However, the utilities sector has been proving its resilience, especially when looking at the S&P 500 Utilities index, which is down only 2% comparably.

In times of upside, traders can get utilities exposure while amplifying their gains with triple leverage using the Direxion Daily Utilities Bull 3X Shares (UTSL A-). The fund seeks daily investment results equal to 300% of the daily performance of the Utilities Select Sector Index.


Content continues below advertisement

Play the Utilities Sector as Recession Signals Loom

For more news, information, and strategy, visit the Leveraged & Inverse Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X