For investors seeking momentum, Invesco S&P Ultra Dividend Revenue ETF (RDIV) is probably on radar. The fund just hit a 52-week high and is up 22.9% from its 52-week low price of $37.63/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 of where it might be headed:
RDIV in Focus
Invesco S&P Ultra Dividend Revenue ETF invests in securities on the S&P 900, which excludes the top 5% of securities by dividend yield, top 5% of securities within each sector by dividend payout ratio, selects the top 60 securities by dividend yield, and re-weighs those securities according to the revenues earned with a maximum 5% per company weighting. The product charges 39 bps in annual fees and yields 3.07% annually.
Why the Move?
The dividend corner of the broad investing world has been an area to watch lately, given the bouts of volatility and uncertainty in the stock market. This is because dividend-focused ETFs offer safety in the form of payouts and stability through mature companies that are less volatile to the large swings in stock prices. The dividend-paying securities are major sources of consistent income for investors when returns from equity markets are at risk. Further, these products are proven outperformers over the long term.
More Gains Ahead?
Currently, RDIV 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.
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For investors seeking momentum, Invesco S&P Ultra Dividend Revenue ETF (RDIV) is probably on radar. The fund just hit a 52-week high and is up 22.9% from its 52-week low price of $37.63/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 of where it might be headed:
RDIV in Focus
Invesco S&P Ultra Dividend Revenue ETF invests in securities on the S&P 900, which excludes the top 5% of securities by dividend yield, top 5% of securities within each sector by dividend payout ratio, selects the top 60 securities by dividend yield, and re-weighs those securities according to the revenues earned with a maximum 5% per company weighting. The product charges 39 bps in annual fees and yields 3.07% annually.
Why the Move?
The dividend corner of the broad investing world has been an area to watch lately, given the bouts of volatility and uncertainty in the stock market. This is because dividend-focused ETFs offer safety in the form of payouts and stability through mature companies that are less volatile to the large swings in stock prices. The dividend-paying securities are major sources of consistent income for investors when returns from equity markets are at risk. Further, these products are proven outperformers over the long term.
More Gains Ahead?
Currently, RDIV 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.
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 >>
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