Investors seeking momentum may have iShares U.S. Utilities ETF (IDU - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of IDU are up approximately 20.3% from their 52-week low of $119.51/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
IDU in Focus
IDU focuses on providing exposure to the utility sector of the U.S. equity market. The fund has a large-cap focus with key holdings in the Electric Utilities, Multi-Utilities and Gas Utilities sectors, with 56.9%, 30.9% and 5.3% allocation, respectively. IDU charges investors 43 basis points in fee per year (see all the Utilities/Infrastructure ETFs here).
Why the move?
The utilities sector has been performing well lately. The sector has been hovering around an all-time high as long-term bond yields have lately been on a downtrend. This went in favor of the rate-sensitive sector and the fund.
More Gains Ahead?
Currently, IDU has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So it is difficult to get a handle on its future returns one way or another. The fund has a weighted alpha of 6.30. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.
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