For investors seeking momentum, Invesco S&P 500® Equal Weight Utilities ETF ( (TSXV:RYU) ) is probably on radar. The fund just hit a 52-week high and is up 23.3% from its 52-week low price of $85.12 per 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 underlying S&P 500 Equal Weight Telecommunication Services & Utilities Index equally weights stocks found in the utilities and telecommunication services sectors of the S&P 500 Index. The fund charges 40 bps in fees and yields about 2.58% annually.
Why the Move?
Since markets have been volatile lately due to renewed U.S.-China trade tensions, bond yields have been hovering at lower levels. Also, there are talks that the Fed may cut rates in September. This is a great scenario for utilities ETFs as these perform better in a low-rate environment.
More Gains Ahead?
The fund has a positive weighted alpha of 19.40. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer, especially if uncertainty prevails.
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Invesco S&P 500 Equal Weight Utilities ETF (RYU): ETF Research Reports
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Zacks Investment Research