{"id":161134,"date":"2022-10-10T12:23:04","date_gmt":"2022-10-10T16:23:04","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=161134"},"modified":"2023-02-10T13:30:29","modified_gmt":"2023-02-10T18:30:29","slug":"the-marginal-utility-of-uty","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/the-marginal-utility-of-uty\/","title":{"rendered":"The Marginal Utility of UTY"},"content":{"rendered":"\n<p>Late last week <a href=\"https:\/\/www.wsj.com\/livecoverage\/stock-market-news-today-2022-10-07\/card\/utilities-reverse-gains-from-earlier-in-the-year-0hDBV3mzx7l5P40UcANV\">I was asked<\/a> about the relative underperformance of utility stocks over the past few weeks.&nbsp; Admittedly, that question came a bit by surprise.&nbsp; I don\u2019t always follow utilities as closely as sectors like tech or energy that either dominate major indices or investors\u2019 focus.&nbsp; I knew that the normally sleepy utility sector had been more volatile than normal, but was somewhat shocked to see that the PHLX Utility Sector Index (UTY) had a roughly 20% round trip in recent weeks.&nbsp; In trying to analyze whether this sort of move had precedents, I was also surprised to see a potentially distressing pattern in the graphs.<\/p>\n\n\n\n<p>Utilities are meant to be defensive.&nbsp; While the demand for their output is impacted by economic activity, they have a very high and stable baseline.&nbsp; While industrial demand might fluctuate somewhat, the demand from consumers remains quite stable.&nbsp; They operate in a highly regulated environment, which limits their profit potential but essentially guarantees a baseline profit.&nbsp; That allows them to pay relatively generous and stable dividends.&nbsp; These factors often allow the utility sector to outperform during rocky times for equities. The sector\u2019s appeal suffers when their dividend payouts become relatively unappealing relative to bond rates or when their input costs rise faster than their ability to pass them along to customers.&nbsp; Both have occurred this year, however, which has led to the recent volatility.<\/p>\n\n\n\n<p>The chart below demonstrates the relatively eye-popping moves in UTY during this year.&nbsp; This supposedly sleepy index had not one, but two round-trips of roughly 20%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>UTY (blue\/white daily bars) vs SPX (green line), Year-To-Date<\/em><\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"936\" height=\"554\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture1-6.png\" alt=\"UTY (blue\/white daily bars) vs SPX (green line), Year-To-Date\" class=\"wp-image-161139 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture1-6.png 936w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture1-6-700x414.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture1-6-300x178.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture1-6-768x455.png 768w\" data-sizes=\"(max-width: 936px) 100vw, 936px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 936px; aspect-ratio: 936\/554;\" \/><\/figure>\n\n\n\n<p>Source: Bloomberg<\/p>\n\n\n\n<p>Then I looked back over the history of UTY to see if there were either similar periods of volatility, or periods when UTY outperformed SPX for extended periods of time only to plunge faster.&nbsp; The graph below shows a few precedents \u2013 highlighted by arrows \u2013 when these occurred.&nbsp; None are particularly encouraging.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>UTY (blue\/white quarterly bars) vs SPX (green line), Since 1987<\/em><\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"936\" height=\"531\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture2-2.png\" alt=\"UTY (blue\/white quarterly bars) vs SPX (green line), Since 1987\" class=\"wp-image-161136 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture2-2.png 936w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture2-2-700x397.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture2-2-300x170.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture2-2-768x436.png 768w\" data-sizes=\"(max-width: 936px) 100vw, 936px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 936px; aspect-ratio: 936\/531;\" \/><\/figure>\n\n\n\n<p>Source: Bloomberg<\/p>\n\n\n\n<p>For better or worse, we see similar patterns during some of the more vicious market selloffs during the past 30+ years.&nbsp; It is evident at a few points in over just the past five year, as shown below:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-uty-blue-white-daily-bars-vs-spx-green-line-5-years\"><strong><em>UTY (blue\/white daily bars) vs SPX (green line), 5 Years<\/em><\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"936\" height=\"531\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture3-2.png\" alt=\"UTY (blue\/white daily bars) vs SPX (green line), 5 Years\" class=\"wp-image-161138 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture3-2.png 936w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture3-2-700x397.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture3-2-300x170.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2022\/10\/Picture3-2-768x436.png 768w\" data-sizes=\"(max-width: 936px) 100vw, 936px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 936px; aspect-ratio: 936\/531;\" \/><\/figure>\n\n\n\n<p>Source: Bloomberg<\/p>\n\n\n\n<p>We see the pattern repeat in the weeks leading up the \u201cvolmageddon\u201d of early 2018, during the quick bear market of late 2018, during the chaos of 2020\u2019s Covid selloff, and earlier this year.&nbsp;<\/p>\n\n\n\n<p>I interpret the data this way: it is rarely a good thing when investors move into defensive utilities and then throwing in the towel later.&nbsp; Little is more frustrating to investors than moving into defensive stocks only to find them abruptly underperforming.&nbsp; Yet this is not necessarily bad news for markets as a whole.&nbsp; It could be considered a sign of the long-awaited capitulation that would signal a market bottom.&nbsp; Remember, capitulation occurs when investors become thoroughly disenchanted with equities.&nbsp; Investors move into defensive stocks when they want or need to stay relatively fully invested in equities, then sell those defensive stocks when they decide that they want less overall exposure.<\/p>\n\n\n\n<p>When we look at some of the periods highlighted in the second graph, we see that they tended to precede the abysses of the bear markets by just a few months.&nbsp; If taken in isolation that could make the current situation a possible harbinger of better times to come.&nbsp; But there are two problems with that partly sunny view.&nbsp; First, the bottoms in the major bear markets earlier this century came only after further painful declines in the broader market.&nbsp; Second, we have not faced our current levels of inflation during the entire life of UTY.&nbsp; If more rate hikes are to come, we likely need a clearer rate picture before the full capitulation occurs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I knew that the normally sleepy utility sector had been more volatile than normal, but was somewhat shocked to see that the PHLX Utility Sector Index (UTY) had a roughly 20% round trip in recent weeks.  <\/p>\n","protected":false},"author":4,"featured_media":47191,"comment_status":"closed","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14700,6,8,9,22,26,3],"tags":[12904,12902,12903,860],"contributors-categories":[13576],"class_list":{"0":"post-161134","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ibkr-market-insights","8":"category-north-america","9":"category-region","10":"category-securities","11":"category-stocks","12":"category-text-articles","13":"category-traders-insight","14":"tag-defensive-utilities","15":"tag-phlx-utility-sector-index","16":"tag-uty","17":"tag-volatility","18":"contributors-categories-interactive-brokers"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Marginal Utility of UTY | Traders&#039; Insight<\/title>\n<meta name=\"description\" content=\"I knew that the normally sleepy utility sector had been more volatile than normal, but was somewhat shocked to see that the PHLX Utility Sector Index...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/161134\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Marginal Utility of UTY | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"I knew that the normally sleepy utility sector had been more volatile than normal, but was somewhat shocked to see that the PHLX Utility Sector Index (UTY) had a roughly 20% round trip in recent weeks.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus US\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-10T16:23:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-10T18:30:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2020\/06\/candles-trading-e1678382468475.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"506\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Steve Sosnick\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Steve Sosnick\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"NewsArticle\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/the-marginal-utility-of-uty\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/the-marginal-utility-of-uty\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"Steve Sosnick\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/31988d9596575a63ddc53e92049a2549\"\n\t            },\n\t            \"headline\": \"The Marginal Utility of UTY\",\n\t            \"datePublished\": \"2022-10-10T16:23:04+00:00\",\n\t            \"dateModified\": \"2023-02-10T18:30:29+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/the-marginal-utility-of-uty\\\/\"\n\t            },\n\t            \"wordCount\": 669,\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/the-marginal-utility-of-uty\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2020\\\/06\\\/candles-trading-e1678382468475.jpg\",\n\t            \"keywords\": [\n\t                \"defensive utilities\",\n\t                \"PHLX Utility Sector Index\",\n\t                \"UTY\",\n\t                \"volatility\"\n\t            ],\n\t            \"articleSection\": [\n\t                \"IBKR Insights\",\n\t                \"North America\",\n\t                \"Region\",\n\t                \"Securities\",\n\t                \"Stocks\",\n\t                \"Text Articles\",\n\t                \"Traders' Insight\"\n\t            ],\n\t            \"inLanguage\": \"en-US\"\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/the-marginal-utility-of-uty\\\/\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/the-marginal-utility-of-uty\\\/\",\n\t            \"name\": \"The Marginal Utility of UTY | IBKR Campus US\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\"\n\t            },\n\t            \"primaryImageOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/the-marginal-utility-of-uty\\\/#primaryimage\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/the-marginal-utility-of-uty\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2020\\\/06\\\/candles-trading-e1678382468475.jpg\",\n\t            \"datePublished\": \"2022-10-10T16:23:04+00:00\",\n\t            \"dateModified\": \"2023-02-10T18:30:29+00:00\",\n\t            \"description\": \"I knew that the normally sleepy utility sector had been more volatile than normal, but was somewhat shocked to see that the PHLX Utility Sector Index (UTY) had a roughly 20% round trip in recent weeks.\",\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"ReadAction\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/the-marginal-utility-of-uty\\\/\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"ImageObject\",\n\t            \"inLanguage\": \"en-US\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/traders-insight\\\/the-marginal-utility-of-uty\\\/#primaryimage\",\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2020\\\/06\\\/candles-trading-e1678382468475.jpg\",\n\t            \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2020\\\/06\\\/candles-trading-e1678382468475.jpg\",\n\t            \"width\": 900,\n\t            \"height\": 506\n\t        },\n\t        {\n\t            \"@type\": \"WebSite\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"name\": \"IBKR Campus US\",\n\t            \"description\": \"Financial Education from Interactive Brokers\",\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"SearchAction\",\n\t                    \"target\": {\n\t                        \"@type\": \"EntryPoint\",\n\t                        \"urlTemplate\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/?s={search_term_string}\"\n\t                    },\n\t                    \"query-input\": {\n\t                        \"@type\": \"PropertyValueSpecification\",\n\t                        \"valueRequired\": true,\n\t                        \"valueName\": \"search_term_string\"\n\t                    }\n\t                }\n\t            ],\n\t            \"inLanguage\": \"en-US\"\n\t        },\n\t        {\n\t            \"@type\": \"Organization\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\",\n\t            \"name\": \"Interactive Brokers\",\n\t            \"alternateName\": \"IBKR\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/\",\n\t            \"logo\": {\n\t                \"@type\": \"ImageObject\",\n\t                \"inLanguage\": \"en-US\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\",\n\t                \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"contentUrl\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2024\\\/05\\\/ibkr-campus-logo.jpg\",\n\t                \"width\": 669,\n\t                \"height\": 669,\n\t                \"caption\": \"Interactive Brokers\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/logo\\\/image\\\/\"\n\t            },\n\t            \"publishingPrinciples\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/about-ibkr-campus\\\/\",\n\t            \"ethicsPolicy\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/cyber-security-notice\\\/\"\n\t        },\n\t        {\n\t            \"@type\": \"Person\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/31988d9596575a63ddc53e92049a2549\",\n\t            \"name\": \"Steve Sosnick\",\n\t            \"description\": \"Steve is the Chief Strategist at Interactive Brokers. He has held numerous roles in the organization since joining Timber Hill, IBKR\u2019s predecessor, in 1995 as Equity Risk Manager and an options market maker. He developed and implemented automated trading strategies for stocks and options before moving into his current role. Steve has guest authored several columns in Barron\u2019s and made numerous live on Bloomberg TV and Radio, CNBC, Yahoo Finance, Fox Business, and several other media outlets in North America, Asia, Australia, and the Middle East in addition to being quoted frequently in print and electronic media. Prior to joining Interactive Brokers, Sosnick held senior trading roles at Morgan Stanley, Lehman Brothers, and Salomon Brothers, where he completed the firm\u2019s famed training program.\",\n\t            \"sameAs\": [\n\t                \"https:\\\/\\\/ibkr.com\"\n\t            ],\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/author\\\/steve-sosnick\\\/\"\n\t        }\n\t    ]\n\t}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The Marginal Utility of UTY | Traders' Insight","description":"I knew that the normally sleepy utility sector had been more volatile than normal, but was somewhat shocked to see that the PHLX Utility Sector Index...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/161134\/","og_locale":"en_US","og_type":"article","og_title":"The Marginal Utility of UTY | IBKR Campus US","og_description":"I knew that the normally sleepy utility sector had been more volatile than normal, but was somewhat shocked to see that the PHLX Utility Sector Index (UTY) had a roughly 20% round trip in recent weeks.","og_url":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/","og_site_name":"IBKR Campus US","article_published_time":"2022-10-10T16:23:04+00:00","article_modified_time":"2023-02-10T18:30:29+00:00","og_image":[{"width":900,"height":506,"url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2020\/06\/candles-trading-e1678382468475.jpg","type":"image\/jpeg"}],"author":"Steve Sosnick","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Steve Sosnick","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/#article","isPartOf":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/"},"author":{"name":"Steve Sosnick","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/31988d9596575a63ddc53e92049a2549"},"headline":"The Marginal Utility of UTY","datePublished":"2022-10-10T16:23:04+00:00","dateModified":"2023-02-10T18:30:29+00:00","mainEntityOfPage":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/"},"wordCount":669,"publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/#primaryimage"},"thumbnailUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2020\/06\/candles-trading-e1678382468475.jpg","keywords":["defensive utilities","PHLX Utility Sector Index","UTY","volatility"],"articleSection":["IBKR Insights","North America","Region","Securities","Stocks","Text Articles","Traders' Insight"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/","url":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/","name":"The Marginal Utility of UTY | IBKR Campus US","isPartOf":{"@id":"https:\/\/ibkrcampus.com\/campus\/#website"},"primaryImageOfPage":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/#primaryimage"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/#primaryimage"},"thumbnailUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2020\/06\/candles-trading-e1678382468475.jpg","datePublished":"2022-10-10T16:23:04+00:00","dateModified":"2023-02-10T18:30:29+00:00","description":"I knew that the normally sleepy utility sector had been more volatile than normal, but was somewhat shocked to see that the PHLX Utility Sector Index (UTY) had a roughly 20% round trip in recent weeks.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ibkrcampus.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ibkrcampus.com\/campus\/traders-insight\/the-marginal-utility-of-uty\/#primaryimage","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2020\/06\/candles-trading-e1678382468475.jpg","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2020\/06\/candles-trading-e1678382468475.jpg","width":900,"height":506},{"@type":"WebSite","@id":"https:\/\/ibkrcampus.com\/campus\/#website","url":"https:\/\/ibkrcampus.com\/campus\/","name":"IBKR Campus US","description":"Financial Education from Interactive Brokers","publisher":{"@id":"https:\/\/ibkrcampus.com\/campus\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ibkrcampus.com\/campus\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ibkrcampus.com\/campus\/#organization","name":"Interactive Brokers","alternateName":"IBKR","url":"https:\/\/ibkrcampus.com\/campus\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/","url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","contentUrl":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/ibkr-campus-logo.jpg","width":669,"height":669,"caption":"Interactive Brokers"},"image":{"@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/logo\/image\/"},"publishingPrinciples":"https:\/\/www.interactivebrokers.com\/campus\/about-ibkr-campus\/","ethicsPolicy":"https:\/\/www.interactivebrokers.com\/campus\/cyber-security-notice\/"},{"@type":"Person","@id":"https:\/\/ibkrcampus.com\/campus\/#\/schema\/person\/31988d9596575a63ddc53e92049a2549","name":"Steve Sosnick","description":"Steve is the Chief Strategist at Interactive Brokers. He has held numerous roles in the organization since joining Timber Hill, IBKR\u2019s predecessor, in 1995 as Equity Risk Manager and an options market maker. He developed and implemented automated trading strategies for stocks and options before moving into his current role. Steve has guest authored several columns in Barron\u2019s and made numerous live on Bloomberg TV and Radio, CNBC, Yahoo Finance, Fox Business, and several other media outlets in North America, Asia, Australia, and the Middle East in addition to being quoted frequently in print and electronic media. Prior to joining Interactive Brokers, Sosnick held senior trading roles at Morgan Stanley, Lehman Brothers, and Salomon Brothers, where he completed the firm\u2019s famed training program.","sameAs":["https:\/\/ibkr.com"],"url":"https:\/\/www.interactivebrokers.com\/campus\/author\/steve-sosnick\/"}]}},"jetpack_featured_media_url":"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2020\/06\/candles-trading-e1678382468475.jpg","_links":{"self":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/161134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/comments?post=161134"}],"version-history":[{"count":0,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/posts\/161134\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media\/47191"}],"wp:attachment":[{"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/media?parent=161134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/categories?post=161134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/tags?post=161134"},{"taxonomy":"contributors-categories","embeddable":true,"href":"https:\/\/ibkrcampus.com\/campus\/wp-json\/wp\/v2\/contributors-categories?post=161134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}