Weekly Feature | Nasdaq Dorsey Wright

With no changes to any of the iShares models this week, we take a look at the iShares US Utilities ETF (IDU).

There are no changes to any of the iShares models this week. Amid the volatility we’ve experienced this year, the traditionally defensive utilities sector has gained relative strength moving up from sixth to fourth in the DALI sector rankings and the S&P 500 Utilities Index (.SPSU) is the second-best performing sector in the S&P this year behind consumer staples (.SPSCS).

Investors looking to add exposure to utilities may wish to consider the iShares US Utilities ETF (IDU). IDU currently has a strong 5.04 fund score, which is 0.63 points better than the average for all utilities funds, and a positive 1.19 score direction. On its default chart, the fund returned to a buy signal this week when it broke a double top at $102. Although it has rallied roughly 10% from the low it reached in April, IDU remains in actionable territory with a weekly overbought/oversold (OBOS) reading of 18%. Initial support can be found at $97, while the fund’s bullish support line sits at $95.

Year-to-date (through 4/30) IDU has gained 5.73% on a price return basis, while the S&P 500 (SPX) is down -5.31%. IDU also carries a 2.3% yield.

Back to report

DISCLOSURE

**Unless otherwise stated, the performance numbers herein are based on price returns and do not include dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. BlackRock sponsors the Dorsey Wright iShares ETF Models. However, analysis, models and recommendations are created and provided solely by Dorsey, Wright & Associates (Dorsey Wright). Neither BlackRock, BlackRock Advisors and its affiliates, nor SEI Investments Distribution Co. or its affiliates (SEI) are affiliated with Dorsey Wright. Neither BlackRock nor SEI provides investment advice or recommendations regarding any security, fund or market. Analysis, models and recommendations should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security, including iShares. The examples presented do not take into consideration commissions, tax implications, or other transactions costs. No individual risk management tools are used in maintaining this model. This model may not be suitable for all investors. As the investment professional making the final decision with respect to allocations, remember to adhere to NASD Rules 2090 and 2111 (formerly NYSE Rule 405, Know Your Customer). The percentage of the portfolio devoted to any iShares strategy, as well as final individual weightings are at the sole discretion of the financial advisor and not Dorsey, Wright & Associates, BlackRock or SEI Investments Distribution Co. or its affiliates (SEI) . If you are not familiar with the Point & Figure methodology, we suggest you read "Point & Figure Charting, 4th Edition" by Thomas J. Dorsey or visit the PnF University at www.dorseywright.com. If you are not familiar with the iShares products, or Exchange Traded Funds (ETFs), we suggest you visit www.ishares.com for more information.