For investors seeking momentum, PowerShares Variable Rate Preferred Portfolio (VRP - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up over 14.9% from its 52-week low price of $21.75 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:
VRP in Focus
The fund holds variable- and floating-rate preferred stocks which reduce interest rate risk. The product charges 50 bps in fees (see Convertibles/CEFs/Preferred Stock ETFs here).
Why the Move?
With the U.S. benchmark Treasury yields falling below 1.50%, the drive for higher income has made this fund a winner. Juicy yields around 5% offered by preferred stocks attract investors to this space. Also, these securities have much lower volatility than stocks and provide stability to a portfolio in a rocky environment like what we are witnessing now.
More Gains Ahead?
It seems that this fund can be exercised a little further as evident by the positive weighted alpha of 2.67. A positive weighted alpha hints at more gains.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
For investors seeking momentum, PowerShares Variable Rate Preferred Portfolio (VRP - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up over 14.9% from its 52-week low price of $21.75 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:
VRP in Focus
The fund holds variable- and floating-rate preferred stocks which reduce interest rate risk. The product charges 50 bps in fees (see Convertibles/CEFs/Preferred Stock ETFs here).
Why the Move?
With the U.S. benchmark Treasury yields falling below 1.50%, the drive for higher income has made this fund a winner. Juicy yields around 5% offered by preferred stocks attract investors to this space. Also, these securities have much lower volatility than stocks and provide stability to a portfolio in a rocky environment like what we are witnessing now.
More Gains Ahead?
It seems that this fund can be exercised a little further as evident by the positive weighted alpha of 2.67. A positive weighted alpha hints at more gains.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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