Utilities ETF (FUTY) Hits a New 52-Week High

Sweta Jaiswal, FRM

For investors seeking momentum, Fidelity MSCI Utilities Index ETF FUTY is probably a suitable pick. The fund just hit a 52-week high, up roughly 25.3% from its 52-week low of $36.63/share.

But does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

FUTY in Focus

The fund seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Utilities Index. FUTY is charging 8 basis points (bps) in fees. The fund has amassed $1.07 billion in AUM (see all Utilities/Infrastructure ETFs here).

Why this Move?

China is grappling with the coronavirus outbreak that has already claimed at least 1,868 lives in the nation, along with 72,436 confirmed cases. The heightening tensions are causing investors to seek refuge in safer investment options, with the utility sector grabbing major attention. The sector is among the most stable for the long term, as its players are likely to offer decent returns, irrespective of market conditions. It is known for its non-cyclical nature and acts as a safe haven for investors during erratic stock market conditions. Moreover, utilities act as a defensive option to stay invested in more rewarding equity markets.

More Gains Ahead?

Currently, FUTY carries a Zacks Rank #3 (Hold), with a Medium risk outlook. However, it seems that FUTY might remain strong given a positive weighted alpha of 26.4.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Fidelity MSCI Utilities Index ETF (FUTY): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report