NEW YORK ( TheStreet) -- Utility ETFs rose on Friday amid lackluster trading in stocks. Blackstone's buyout of Dynegy ( DYN) and overall weakness in sentiment lifted demand.

The buyout of Dynegy by Blackstone sent the stock soaring nearly 60%, helping to lift other utility stocks. Uncertainty about economic growth also pushed investors towards the sector, traditionally viewed as safe-haven equity stocks because of their high dividend yield.

The Utilities Select Sector SPDR ( XLU) is gaining 0.9%, with its top holdings Southern Company ( SO) and Exelon Corp ( EXC) gaining about 0.9% each.

Also gaining is the iShares Dow Jones US Utilities ETF ( IDU), up 0.6% and the Vanguard Utilities Index ( VPU) is up 0.7%.

Treasury ETFs continue to be popular with investors with the iShares Barclays 20+Year Treasury ( TLT) gaining 1%. The 10-year bond yield slid to 2.704%.

Other ETFs gaining on Friday include the Market Vectors Gaming ETF ( BJK) up 0.6% and Market Vector Solar ETF ( KWT) up 0.5%.

-- Reported by Shanthi Venkataraman in New York.

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