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Utilities ETF (PUI) Hits New 52-Week High

Sweta Killa
Bull Of The Day: General Electric (GE)

For investors seeking momentum, Invesco DWA Utilities Momentum ETF PUI is probably on radar now. The fund just hit a 52-week high and is up about 25.7% from its 52-week low price of $24.92/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:

PUI in Focus

This ETF provides exposure to utilities companies that are showing relative strength (momentum). It has key holdings in electric utilities, multi utilities and gas utilities. PUI charges 60 bps in annual fees (see: all the Utilities ETFs here).

Why the Move?

The utility sector has been an area to watch lately given the bouts of volatility and uncertainty that bode well for the utility stocks. Being the 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 one that is unaffected by economic cycles and politics. Additionally, utilities offer solid dividend payouts and excellent capital appreciation over the longer term.

More Gains Ahead?

Currently, PUI 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.

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Invesco DWA Utilities Momentum ETF (PUI): ETF Research Reports
 
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