3 ETFs That Show The Flight To Safety Has Started

The stock market is trading at all-time highs, but there may be some troubling signs that suggest the rally may soon end. One of them is the flight to safety that's underway.

This means investors have been selling their risky stocks and putting the money into safer ones. This is the type of action that occurs at or near market tops.

For example, last year big data and technology stocks lead the broader market, but these stocks have recently been moving lower.

See Also: 2 ETFs To Play The Lumber Shortage

The Technology Select Sector SPDR Fund XLK tracks the technology sector. Over the past two weeks, it has been trending lower as investors sell their risky technology stocks.

xlk_1.png

At the same time, money has been pouring into the healthcare sector. This sector is considered safe because there will always be a demand for healthcare, regardless of the state of the economy.

The Health Care Select Sector SPDR Fund XLV tracks the health care sector. It has soared 12% since early March.

xlv_0.png

The consumer staples sector is also considered safe. Staples are products people need like food and medicine. This is in contrast to things people desire, but don’t require like expensive jewelry and luxury vacations. Money has been coming into this sector as well.

The Consumer Staples Select Sector SPDR Fund XLP has gained 11% since early March.

xlp.png

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!