For investors seeking momentum, iShares Global Utilities ETF (JXI - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 14.2% from its 52-week low price of $46.42/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 on where it might be headed:
JXI in Focus
The fund looks to track the S&P Global 1200 Utilities Sector Index, which measures the performance of companies that are part of the utilities sector of the economy. Nextera Energy, Duke Energy and Dominion Energy are the top three holdings of the fund. Countries like United States (60.88%), United Kingdom (6.53%) and Spain (6.23%) get the top three geographic allocation. It charges 47 bps in fees (see all Utilities/Infrastructure ETFs here).
Why the Move?
The dovish Fed in 2019 has put a check on the rise on bond yields. This in turn has favored a rate-sensitive and high-yielding sector like utilities. Not only in the United States, rates are likely to remain subdued globally given growth worries. This kind of environment normally benefits utilities investing.
More Gains Ahead?
The fund has a positive weighted alpha of 11.80, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer. However, if U.S.-China trade tensions are resolved, there is likely to be growing appetite for risks, which may go against this safe-haven fund.
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