Investors seeking momentum may have iShares U.S. Utilities ETF (IDU - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of IDU are up approximately 27.4% from their 52-week low of $134.86/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.
IDU in Focus
IDU focuses on providing exposure to the utility sector of the U.S. equity market. The fund has a large-cap focus with key holdings in the Electric Utilities, Multi-Utilities and Gas Utilities sectors, with 58.8%, 29.9% and 4.5% allocation, respectively. IDU charges investors 43 basis points in fee per year (see all the Utilities/Infrastructure ETFs here).
Why the move?
The utilities sector has been performing well lately as long-term bond yields have slumped on the safe-haven rally sparked by the coronavirus outbreak. This went in favor of the rate-sensitive sector and the fund.
More Gains Ahead?
Currently, IDU has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So, it is difficult to get a handle on its future returns one way or another. The fund has a weighted alpha of 23.60. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade 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 >>
Investors seeking momentum may have iShares U.S. Utilities ETF (IDU - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of IDU are up approximately 27.4% from their 52-week low of $134.86/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.
IDU in Focus
IDU focuses on providing exposure to the utility sector of the U.S. equity market. The fund has a large-cap focus with key holdings in the Electric Utilities, Multi-Utilities and Gas Utilities sectors, with 58.8%, 29.9% and 4.5% allocation, respectively. IDU charges investors 43 basis points in fee per year (see all the Utilities/Infrastructure ETFs here).
Why the move?
The utilities sector has been performing well lately as long-term bond yields have slumped on the safe-haven rally sparked by the coronavirus outbreak. This went in favor of the rate-sensitive sector and the fund.
More Gains Ahead?
Currently, IDU has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So, it is difficult to get a handle on its future returns one way or another. The fund has a weighted alpha of 23.60. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade 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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