For investors seeking momentum, iShares U.S. Utilities ETF (IDU Quick QuoteIDU - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 26% from its 52-week low price of $68.87/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 offers exposure to the broad utility sector with U.S. companies that supply electricity, gas, and water. Electric utilities take the largest share at 56.7%, while multi-utilities and environmental & facilities services make up for 22.6% and 11.7%, 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 toward 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, 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.