For investors seeking momentum, Vanguard Utilities ETF (VPU - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 20.2% from its 52-week low price of $99.85/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
VPU in Focus
This ETF provides exposure to companies that distribute electricity, water, or gas, or that operate as independent power producers. It holds 76 securities in its basket and has key holdings in electric utilities and multi utilities. VPU is one of the popular and liquid ETFs in the utilities space with AUM of nearly $2.6 billion and average daily volume of roughly 126,000 shares. Expense ratio comes in at 0.10% (see: all the Utilities ETFs here).
Why the Move?
The utility sector has been an area to watch lately given that political turmoil and geopolitical risk raised the appeal of utility stocks. Being the low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or one that is unaffected by economic cycles and politics. Additionally, utilities offer solid dividend payouts and excellent capital appreciation over the longer term.
More Gains Ahead?
Currently, VPU has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook, suggesting that the outperformance is unlikely to continue in the months ahead. However, the fund seems to remain strong given a high weighted alpha of 13.80% and a low 20-day volatility of 6.83%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
For investors seeking momentum, Vanguard Utilities ETF (VPU - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 20.2% from its 52-week low price of $99.85/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
VPU in Focus
This ETF provides exposure to companies that distribute electricity, water, or gas, or that operate as independent power producers. It holds 76 securities in its basket and has key holdings in electric utilities and multi utilities. VPU is one of the popular and liquid ETFs in the utilities space with AUM of nearly $2.6 billion and average daily volume of roughly 126,000 shares. Expense ratio comes in at 0.10% (see: all the Utilities ETFs here).
Why the Move?
The utility sector has been an area to watch lately given that political turmoil and geopolitical risk raised the appeal of utility stocks. Being the low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or one that is unaffected by economic cycles and politics. Additionally, utilities offer solid dividend payouts and excellent capital appreciation over the longer term.
More Gains Ahead?
Currently, VPU has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook, suggesting that the outperformance is unlikely to continue in the months ahead. However, the fund seems to remain strong given a high weighted alpha of 13.80% and a low 20-day volatility of 6.83%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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