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Utilities ETF (VPU) Hits New 52-Week High
Investors seeking momentum may have Vanguard Utilities ETF (VPU - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of VPU are up approximately 30.4% from their 52-week low of $118.81/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
VPU In Focus
The underlying MSCI US Investable Market Utilities 25/50 Index comprises of stocks of large, mid-size, and small U.S. companies within the utilities sector. The fund charges 10 bps in fees. The fund yields 3.11% annually.
Why The Move?
The utility sector is a great investment for those seeking yields and safety amid market turmoil. Increasing geopolitical tensions support the fund as the sector is considered a safe-haven. Additionally, it is a rate-sensitive sector and performs well in a low-rate environment. With U.S. interest rates falling this month, utilities sector has outperformed.
More Gains Ahead?
The fund has a positive weighted alpha of 11.25. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.