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Utility ETF (RYU) Hits New 52-Week High

Sanghamitra Saha
Pioneer Natural's (PXD) strong Q3 results can be attributed to higher production volumes of liquids and natural gas.

For investors seeking momentum, Invesco S&P 500 Equal Weight Utilities ETF RYU is probably on radar now. The fund just hit a 52-week high, which is up roughly 18.0% from its 52-week low price of $77.44/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:

RYU in Focus

The fund gives exposure to the utility sector. Electric Utilities account for about 51.555 of the fund followed by multi-utilities (37.81%). Scana Corp (3.90%), AES Corp (3.73%) and Pinnacle West Capital Corp (3.58%) are the top three holdings of the fund. The fund charges 40 bps in fees (see all Utilities/Infrastructure ETFs here).

Why the Move?

Since markets remained volatile lately and there has been a bloodbath in the global market owing mainly to rising rate worries, this defensive ETF gained strength.

More Gains Ahead?

The fund has a Zacks ETF Rank #3 (Hold) and a positive weighted alpha of 6.60. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer, especially if uncertainty remains in the market.

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