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Utilities ETF (VPU) Hits New 52-Week High
For investors seeking momentum, Vanguard Utilities ETF (VPU - Free Report) is probably on the radar. The fund just hit a 52-week high and has moved up 19.7% from its 52-week low price of $151.69 per share.
But are there more gains in store for this ETF? Let us 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.
VPU in Focus
The underlying MSCI US Investable Market Utilities 25/50 Index comprises of stocks of large, mid-size, and small U.S. companies within the utilities sector. The product charges 9 bps in annual fees.
Why the Move?
The utility sector has been an area to watch lately, given investors’ drive toward safety in defensive investments, given uncertain trade policies. 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.
More Gains Ahead?
VPU may continue its strong performance in the near term, with a positive weighted alpha of 17.41 (as of Barchart.com), which gives cues of a further rally.