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Volatility Hedged ETF (HEQT) Hits New 52-Week High
For investors seeking momentum, Simplify Hedged Equity ETF (HEQT - Free Report) is probably on the radar. The fund just hit a 52-week high and is up about 18% from its 52-week low price of $23.70/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:
HEQT in Focus
Simplify Hedged Equity ETF seeks to provide capital appreciation by offering US large-cap exposure while investing in a series of put-spread collars designed to help reduce volatility. It charges 53 bps in annual fees (see: all the Large-Cap Blend ETFs here).
Why the Move?
The volatility-hedged corner of the broad market has been an area to watch lately, given the spike in volatility after President Joe Biden withdrew from the presidential race. A new Democratic presidential candidate — Kamala Harris — could result in a tighter race than had been predicted before Biden's decision, which could spark volatility across U.S. markets.
More Gains Ahead?
HEQT might remain strong, given a weighted alpha of 13.23 and a lower 20-day volatility of 4.61%. There is definitely still some promise for investors who want to ride on this surging ETF.