Investors seeking momentum may have First Trust Utilities AlphaDEX ETF FXU on radar now. The fund recently hit a new 52-week high. Shares of FXU are up approximately 27.1% from their 52-week low of $24.87/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

FXU in Focus

The underlying StrataQuant Utilities Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology. The fund charges 62 bps in fees and yields 3.23% annually.

Why the move?

The utilities ETF has gained lately probably on hopes that the Fed will maintain its dovish stance in the upcoming meeting. A dovish stance from the Fed will keep rates low and boost utilities ETFs like FXU.

More Gains Ahead?

The fund has a positive weighted alpha of 21.01. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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First Trust Utilities AlphaDEX ETF (FXU): ETF Research Reports
 
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