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Small-Cap Value ETF (RZV) Hits New 52-Week High

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Investors seeking momentum may have S&P SmallCap 600 Pure Value Invesco ETF (RZV - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of RZV are up approximately 89.5% from their 52-week low of $55.19/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

RZV In Focus

The underlying S&P SmallCap 600 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P SmallCap 600 Index. The fund charges 35 bps in fees.

Why The Move?

Small-cap stocks staged a great performance to start November. The cohort has underperformed its bigger peers like the S&P 500 and the Nasdaq in the past six-month period. But things are taking a turn for the better for the pint-sized stocks. The small-cap benchmark Russell 2000 rose to close at an all-time high last week.

Holiday season related sales, upbeat earnings and cheaper valuation augur well for the pint-sized stocks. Moreover, the Fed’s imminent QE tapering is likely to boost the greenback. Since the small-caps are more domestically-focused and do not have much foreign exposure, these are less likely to suffer amid a rising dollar.  

More Gains Ahead?

The fund has a positive weighted alpha of 66.23. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.


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