For investors looking for momentum, Invesco S&P 500 Equal Weight Utilities ETF (V:RYU) is probably on radar now. The fund just hit a 52-week high, and shares of RYU are up roughly 19.7% from their 52-week low price of $77.44/share.
But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near term outlook to get a better idea on where it might be headed:
RYU in Focus
The fund tracks the S&P 500 Equal Weight Telecommunication Services & Utilities Index. Electric utilities (50.4%) have the highest allocation followed by Multi Utilities (38.7%). It comprises 29 holdings with Scana Corp (NYSE:SCG) occupying the top weight (4.4%). The fund charges 40 bps in fees (see: all Utilities/Infrastructure ETFs here).
Why the move?
The markets have been showing great signs of volatility lately. Additionally, with all the uncertainty surrounding trade talks between Washington and Beijing in the G-20 summit, investors flocked toward this safe -haven sector on Friday.
More Gains Ahead?
Currently, RYU has a Zacks ETF Rank #3 (Hold). So there is definitely still some promise for those who want to try to ride this surging ETF a little further.
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SCANA Corporation (SCG): Free Stock Analysis Report
GUGG-SP5 EW UTL (RYU): ETF Research Reports
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Zacks Investment Research