In short: On "the less favorable end of the spectrum," and already the worst performer over the two months of rising yields — the interest-sensitive segment where the bond move shows up beneath the index.
XLU holds the electric, gas and water utilities — steady, dividend-paying businesses that investors buy largely for income. That makes them "interest-sensitive": when a government bond suddenly pays 4.8% risk-free, a utility's dividend looks less attractive and its share price falls.
That is exactly what has happened. Utilities have been among the worst performers over the two months of rising yields, and Schwab has them on the less-favorable end of its scale. Sonders' broader point is that this is where the bond selloff has actually shown up — beneath a calm-looking index rather than in it.
43:25We also little bit more from a valuation perspective are on the more favorable end of the spectrum on healthcare and then on the less favorable end of the spectrum would be areas like I already mentioned utilities and real estate. So, but we think applying that factor overlay because even within sectors, you're seeing much more dispersion and the key to figuring out what's going to be on the better end of that dispersion of performance, what's going to be on the worse end.
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