Are Defensive ETF Plays Overbought?

The past year has been a rocky one for the markets. In an environment of collapsing commodity prices in the U.S. and the threat of declining growth in the emerging markets, investors sought safety in defensive plays like the consumer staples and utilities sectors. These sectors performed much better than others in the market, such as energy and health care. As a result, exchange-traded funds (ETFs) that track these sectors have outperformed the market this year.