For investors seeking momentum, Virtus Reaves Utilities ETF (UTES Quick QuoteUTES - Free Report) is probably on radar. The fund just hit a 52-week high and is up 27% from its 52-week low price of $38.82/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:

UTES in Focus

Virtus Reaves Utilities ETF is an actively managed fund seeking to provide total return through a combination of capital appreciation and income, primarily through investments in equity securities of companies in the utility sector. The product charges 49 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 growing inflation fears and escalating geopolitical tensions. Additionally, bouts of weak corporate earnings also added to the chaos.

More Gains Ahead?

Currently, UTES might remain strong, given a good weighted alpha of 10.88 and a pretty low 20-day volatility of 14.96%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride this surging ETF.