For investors seeking momentum, iShares U.S. Utilities ETF IDU is probably on the radar. The fund just hit a 52-week high and is up 50.15% 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

The underlying Russell 1000 Utilities RIC 22.5/45 Capped Index measures the performance of the utilities sector of the U.S. equity market. It includes companies in the following sectors: electricity and gas, water and multi-utilities. The product charges 40 bps in annual fees (See: All Utilities/Infrastructure ETFs).

Why the Move?

The utilities sector has been an area to watch lately, given escalating geopolitical tensions and increasing uncertainty surrounding the upcoming U.S. Presidential elections. The likelihood of the ongoing conflict in the Middle East spreading has increased following Iran's attack on Israel earlier this week. Recent port worker’s strike also increases market uncertainty. Utilities are less vulnerable to drastic market fluctuations,making them a defensive investment or safe haven during periods of economic or political instability.

More Gains Ahead?

Currently, IDU has a Zacks ETF Rank #3 (Medium) and a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 44.85 (as per Barchart.com), which gives cues of a further rally.

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iShares U.S. Utilities ETF (IDU): ETF Research Reports

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