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Utilities ETF (IDU) Hits New 52-Week High

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For investors seeking momentum, iShares U.S. Utilities ETF (IDU - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 21% from its 52-week low price of $91.91/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

iShares U.S. Utilities ETF offers exposure to U.S. companies that supply electricity, gas and water. It has key holdings in the electric utilities and multi-utilities sectors. The product charges 39 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 strong appreciation in the stocks of this sector. The utility sector enjoyed its strongest winning streak in more than 15 years last month, emerging as the standout performer, despite broader market attention being focused on AI and mega-cap tech stocks. The stocks in the sector logged a consecutive seventh-month gain, reflecting a rare period of sustained sector confidence, underpinned by both short-term demand and structural tailwinds.

More Gains Ahead?

Currently, IDU has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces 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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