Key Points
Tech stocks are facing significant downturns in 2023, with Microsoft’s shares dropping over 15%, a stark contrast to its historically stable performance. The State Street Technology Select Sector SPDR ETF, which tracks tech stocks in the S&P 500, has also declined by 3% compared to a 24% rise the previous year.
In contrast, the Vanguard Utilities Index ETF has increased by 9% this year, attracting investors looking for safer alternatives. This ETF offers a dividend yield of roughly 2.5%, significantly higher than the S&P 500’s average of 1.2%, and has a low expense ratio of 0.09%, making it a popular choice amid tech volatility.
