For investors seeking momentum, Invesco S&P 500 Equal Weight Utilities ETF is probably on radar. The fund just hit a 52-week high and is up 24% from its 52-week low price of $102.19/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:

RYU in Focus

Invesco S&P 500 Equal Weight Utilities ETF targets the utilities segment of the broad stock market. It offers an equal-weight methodology by tracking the S&P 500 Equal Weight Index Telecommunication Services & Utilities Index. Electric utilities and multi utilities make up for the top two sectors with 55.2% and 34.2% share, respectively. The product charges 40 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. Being a 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 safe haven amid economic or political turmoil. Currently, the stock market is ruffled by various issues such as the lingering Russia-Ukraine conflict, a slowdown in China, inflationary pressure and recession fears.

More Gains Ahead?

Currently, RYU 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.