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For investors seeking momentum, Invesco S&P 500 High Beta ETF (SPHB - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 99% from its 52-week low price of $24.48/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:
SPHB in Focus
SPHB provides exposure to stocks from the S&P 500 Index with the highest beta over the past 12 months. Holding 100 stocks in its basket, it is highly diversified across components with none holding more than 1.80% share. The fund has key holdings in the financials, consumer discretionary and energy sectors. It charges 25 basis points in annual fees (see: all the Large Cap Blend ETFs here).
Why the Move?
The high-beta corner of the broad U.S. stock market has been an area to watch lately given the stunning rally in the country’s bourses. In fact, the S&P 500 has turned slightly positive for this year while Nasdaq hit new highs in just 16 weeks after coronavirus fears smashed stocks. The upbeat job data for May, which shows job additions of 2.5 million, bolstered confidence in the economy. The reopening of the economy, unprecedent stimulus and hopes for a potential coronavirus vaccine have been driving the stocks higher. When markets soar, high-beta funds experience larger gains than the broader market counterparts and thus outpace their rivals.
More Gains Ahead?
It seems that SPHB might remain strong given a high weighted alpha of 24.60 and a high 20-day volatility of 57.38%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
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High-Beta ETF (SPHB) Hits New 52-Week High
For investors seeking momentum, Invesco S&P 500 High Beta ETF (SPHB - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 99% from its 52-week low price of $24.48/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:
SPHB in Focus
SPHB provides exposure to stocks from the S&P 500 Index with the highest beta over the past 12 months. Holding 100 stocks in its basket, it is highly diversified across components with none holding more than 1.80% share. The fund has key holdings in the financials, consumer discretionary and energy sectors. It charges 25 basis points in annual fees (see: all the Large Cap Blend ETFs here).
Why the Move?
The high-beta corner of the broad U.S. stock market has been an area to watch lately given the stunning rally in the country’s bourses. In fact, the S&P 500 has turned slightly positive for this year while Nasdaq hit new highs in just 16 weeks after coronavirus fears smashed stocks. The upbeat job data for May, which shows job additions of 2.5 million, bolstered confidence in the economy. The reopening of the economy, unprecedent stimulus and hopes for a potential coronavirus vaccine have been driving the stocks higher. When markets soar, high-beta funds experience larger gains than the broader market counterparts and thus outpace their rivals.
More Gains Ahead?
It seems that SPHB might remain strong given a high weighted alpha of 24.60 and a high 20-day volatility of 57.38%. As a result, there is definitely still some promise for investors who want to ride on 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 >>