For investors seeking momentum, Invesco S&P 500 Equal Weight Utilities ETF is probably on radar. The fund just hit a 52-week high, and is up 20.1% from its 52-week low of $102.2 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 of 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 ETF charges 40 basis points in fees and yields 2.17% annually.

Why the Move?

The long-term rates are falling in the United States on recessionary fears. The Fed has given hints of a faster Fed rate hike while downgrading the real GDP growth outlook. This has dragged down the U.S. treasury yields, which in turn boosted the rate-sensitive sectors like utilities.

More Gains Ahead?

The fund has a positive weighted alpha of 22.30. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.