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S&P 500 Downside Hedged ETF (PHDG) Hits a 52-Week High

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For investors looking for momentum, Invesco S&P 500 Downside Hedged ETF (PHDG - Free Report) is probably a suitable pick. The fund just hit a 52-week high by gaining 17.7% from its 52-week low price of $32.27/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

PHDG in Focus

The Invesco S&P 500 Downside Hedged ETF seeks to achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed-income market returns. PHDG seeks to achieve its investment objective by using a quantitative, rules-based strategy that seeks to obtain returns that exceed the S&P 500 Dynamic VEQTOR Index.  Invesco S&P 500 Downside Hedged ETF has AUM of $295.5 million and charges 40 basis points in annual fees.

Why the Move?

The mood in Wall Street grew tense on the first trading day of December. The Centers for Disease Control and Prevention’s confirmation that the first case of omicron has been detected in the United States in California led to the new wave of worries. The variant was first detected in South Africaand has numerous mutations (more than 30) to the spike protein (as stated in a CNBC article). The coronavirus outbreak is aggravating in some parts of Europe largely due to the cold weather conditions. Various measures are being taken to curtail the spread, which can again impact the economic recovery achieved so far from the pandemic-led slump. This is making funds like PHDG an impressive investment option.

More Gains Ahead?

It seems like Invesco S&P 500 Downside Hedged ETF will remain strong, with a positive weighted alpha of 15.30, which gives cues of a further rally.

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