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SPAC ETF (SPC) Hits New 52-Week High
For investors seeking momentum, CrossingBridge Pre-Merger SPAC ETF (SPC - Free Report) is probably on radar. The fund just hit a 52-week high and is up 3.78% from its 52-week low price of $20.42/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:
SPC in Focus
The fund seeks to provide total returns consistent with the preservation of capital, using an active investment strategy. A special purpose acquisition company (SPAC) raises capital through an IPO to acquire a private operating business within a specified timeframe. The product charges 80 bps in annual fees.
Why the Move?
In Q1,the volume of SPAC IPOs and mergers reverted to the pre-hype levels. The number of SPAC IPOs saw a slight increase compared to the second half of 2022, due to recent developments such as extensions, deal announcements, and liquidations, which helped to reduce the pressure of the SPAC maturity wall. As a result, conditions were favorable for an increased number of appropriately-sized SPAC IPOs.
More Gains Ahead?
It might continue its strong performance given a positive weighted alpha of 3.61.