For investors seeking momentum, iShares U.S. Utilities ETF (IDU Quick QuoteIDU - Free Report) is probably on radar. The fund just hit a 52-week high and is up 22% from its 52-week low price of $78.17/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 of where it might be headed:

IDU in Focus

iShares U.S. Utilities ETF targets the utilities segment of the broad stock market. It offers exposure to U.S. companies that supply electricity, gas and water. The product charges 41 bps in annual fees (see: all the Utilities ETFs here).

Why the Move?

The utility sector has been an area to watch lately, given investors’ drive for safety in defensive investments. The U.S. Treasury bond yield curve is quickly flattening, meaning short-term interest rates are moving up, closer to (or higher than) long-term rates. This has sparked worries of a recession. Being a low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market. It is thus, considered a defensive investment or a safe haven amid economic or political turmoil.

More Gains Ahead?

Currently, IDU has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.