Value ETFs Rise Amid Market Weakness

NEW YORK (TheStreet) -- Investors are flocking to safe-haven equity options such as utility ETFs and dividend yield ETFs on Monday amid market volatility. Early enthusiasm over a spate of merger announcements gave way to concerns about the economy by mid-day, leading to sideways movement in the benchmark indices.

The Utilities HOLDRS ETF(UTH) is rising 1%. The fund's biggest exposure is Exelon Energy(EXC) and Southern Company(SO), up nearly 1% and 0.9% respectively. Utilities Select Sector SPDR(XLU) and the iShares Dow Jones U.S. Utility ETF(IDU) are also gaining.

The Claymore/Sabrient Defensive Equity ETF(DEF) is gaining 0.7% and offers exposure to stocks such as Dollar Tree(DLTR) and McDonald's(MCD).

The First Trust DB Strategic Value ETF(FDV) and the WisdomTree Total Dividend ETF(DTD) are also rising 1.1% and 0.6% respectively.

Treasury ETFs are lower on Monday, ending a winning streak from the past several trading sessions. The United States Oil Fund(USO) was lower by 1.3% as oil prices slipped below $73 a barrel on weak economic outlook.

-- Reported by Shanthi Venkataraman in New York.

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