For investors seeking momentum, PowerShares S&P 500 Low Volatility ETF (SPLV – Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 12.4% from its 52-week low price of $39.17/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 on where it might be headed:
SPLV in Focus
This product offers exposure to stocks from the S&P 500 Index with the lowest realized volatility over the past 12 months. Utilities, Consumer Staples, Industrials and Financials also have a double-digit exposure each. The fund charges 25 bps in fees (see: all large-cap ETFshere).
Why the Move?
Though the U.S. market has been in great shape lately, it hasn’t diminished demand for low volatility ETF. After astounding equity gains on the Trump rally, thoughts of a correction in the market or overvaluation concerns are quite justifiable. Also, the uncertainty over the effectiveness of the Trump’s budget blueprint made things volatile lately, giving a boost to this apparently safe product.
More Gains Ahead?
The fund has a Zacks Rank #2 (Buy) with a Medium risk outlook.Plus, the fund has a positive weighted alpha of 10.90. A positive weighted alpha hints at more gains. As a result, there is definitely still some promise for investors who want to ride on this surging ETF.
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 >>