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For investors seeking momentum, WisdomTree Earnings 500 Fund (EPS - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 29% from its 52-week low price of $61.36/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:
EPS in Focus
This fund provides exposure to earnings-generating companies within the large-cap segment of the broad U.S. stock market. Holding 500 stocks in its basket, the fund is well spread out across each component as each holds less than 5% share. Additionally, the product has diverse exposure to a number of sectors with information technology, financials, consumer discretionary, healthcare and industrials taking double-digit exposure each. The ETF has amassed $119.6 million in its asset base and charges 28 bps in annual fees (see: all the Large Cap ETFs here).
Why the Move?
The earnings-weighted ETF has been an area to watch lately given that Q4 earnings growth is on track to reach the highest level in eight quarters. In fact, Q4 earnings growth follows Q3, when growth finally turned positive after five back-to-back quarters of decline. At the current stage, both earnings and revenue growth is well above the four-quarter and 12-quarter averages. In such a growth scenario, earnings-weighted ETF have the potential to move higher relative to any other product. As a result, tilting toward this key metric is a sensible choice at present.
More Gains Ahead?
Currently, EPS has a Zacks ETF Rank of 2 or ‘Buy’ rating with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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Earnings-Focused ETF (EPS) Hits New 52-Week High
For investors seeking momentum, WisdomTree Earnings 500 Fund (EPS - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 29% from its 52-week low price of $61.36/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:
EPS in Focus
This fund provides exposure to earnings-generating companies within the large-cap segment of the broad U.S. stock market. Holding 500 stocks in its basket, the fund is well spread out across each component as each holds less than 5% share. Additionally, the product has diverse exposure to a number of sectors with information technology, financials, consumer discretionary, healthcare and industrials taking double-digit exposure each. The ETF has amassed $119.6 million in its asset base and charges 28 bps in annual fees (see: all the Large Cap ETFs here).
Why the Move?
The earnings-weighted ETF has been an area to watch lately given that Q4 earnings growth is on track to reach the highest level in eight quarters. In fact, Q4 earnings growth follows Q3, when growth finally turned positive after five back-to-back quarters of decline. At the current stage, both earnings and revenue growth is well above the four-quarter and 12-quarter averages. In such a growth scenario, earnings-weighted ETF have the potential to move higher relative to any other product. As a result, tilting toward this key metric is a sensible choice at present.
More Gains Ahead?
Currently, EPS has a Zacks ETF Rank of 2 or ‘Buy’ rating with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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 >>