Utilities ETF Hits New 52-Week High

For investors seeking momentum, Invesco S&P SmallCap Utilities & Communication Services ETF PSCU is probably on the radar. The fund just hit a 52-week high and is up 22.6% from its 52-week low price of $46.76/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:

PSCU in Focus

Invesco S&P SmallCap Utilities & Communication Services ETF offers exposure to the securities of U.S. utility companies and companies in the communication services sector. It has key holdings in interactive media services, diversified telecom services, water utilities and media. The product charges 29 bps in annual fees.

Why the Move?

The utility sector has been an area to watch lately, given investors' drive toward safety in defensive investments. Recession fears gripped Wall Street after a downbeat U.S. job report, which sparked huge selling across stocks. Being a low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or safe haven amid economic or political turmoil.

More Gains Ahead?

Currently, PSCU has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments 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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