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Low Volatility ETF (EFAV) Hits New 52-Week High

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For investors seeking momentum, iShares MSCI EAFE Min Vol Factor ETF (EFAV - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 16.8% from its 52-week low price of $68.56/share. 

But are there 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:

EFAV in Focus

iShares MSCI EAFE Min Vol Factor ETF offers exposure to stocks in Europe, Australia, Asia and the Far East that have lower volatility characteristics relative to the broader developed equity markets, excluding the United States and Canada. It has key holdings in financials, industrials, healthcare, consumer staples and communication with double-digit exposure each. iShares MSCI EAFE Min Vol Factor ETF charges 20 bps in annual fees (see: all the Broad Developed World ETFs here).

Why the Move?

The low volatility corner of the broader market has been an area to watch lately, given the heightened gyrations in the market.  The uncertainty surrounding Trump’s trade tariff policies and escalating U.S.-China tensions has been making investors jittery. Federal Reserve Chair Jerome Powell’s warnings of severe economic consequences of escalating tariffs heightened volatility. Low-volatility ETFs have the potential to outpace the broader market in an uncertain environment, providing significant protection to the portfolio.

More Gains Ahead?

Currently, EFAV has a Zacks ETF Rank #3 (Hold) with a Low 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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