We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
For investors seeking momentum, iShares Edge MSCI Min Vol USA ETF (USMV - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up 18% from its 52-week low price of $49.50 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 on where it might be headed:
USMV in Focus
This ETF provides exposure to U.S. stocks with potentially lower risk. It has a well-diversified portfolio with key holdings in information technology, healthcare, financials and consumer staples. The fund charges 15 basis points in annual fees (read: all the Large Cap Blend ETFs here).
Why the Move?
The low volatility corner of the broader market has been an area to watch lately given the bouts of volatility and uncertainty. This is especially true as global growth concerns have aggravated following a series of weak economic data. Additionally, the Brexit issue and still lingering uncertainty surrounding the U.S.-China trade deal weighed on the market. Notably, low volatility products have the potential to outpace the broader market in bearish conditions or in an uncertain environment, providing significant protection to the portfolio. These funds include more stable stocks that have experienced the least price movement in their portfolio. Further, these are allocated primarily to defensive sectors that usually have a higher distribution yield than the broader markets.
More Gains Ahead?
Currently, USMV has a Zacks ETF Rank #3 (Hold) with a Medium 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.
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Low Volatility ETF (USMV) Hits New 52-Week High
For investors seeking momentum, iShares Edge MSCI Min Vol USA ETF (USMV - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up 18% from its 52-week low price of $49.50 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 on where it might be headed:
USMV in Focus
This ETF provides exposure to U.S. stocks with potentially lower risk. It has a well-diversified portfolio with key holdings in information technology, healthcare, financials and consumer staples. The fund charges 15 basis points in annual fees (read: all the Large Cap Blend ETFs here).
Why the Move?
The low volatility corner of the broader market has been an area to watch lately given the bouts of volatility and uncertainty. This is especially true as global growth concerns have aggravated following a series of weak economic data. Additionally, the Brexit issue and still lingering uncertainty surrounding the U.S.-China trade deal weighed on the market. Notably, low volatility products have the potential to outpace the broader market in bearish conditions or in an uncertain environment, providing significant protection to the portfolio. These funds include more stable stocks that have experienced the least price movement in their portfolio. Further, these are allocated primarily to defensive sectors that usually have a higher distribution yield than the broader markets.
More Gains Ahead?
Currently, USMV has a Zacks ETF Rank #3 (Hold) with a Medium 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.
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 >>