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Merger & Acquisition ETF (ARB) Hits New 52-Week High
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For investors seeking momentum, AltShares Merger Arbitrage ETF (ARB - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 8.37% from its 52-week low price of $25.81/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:
ARB in Focus
The underlying Water Island Merger Arbitrage USD Hedged Index reflects a pure-play, global merger arbitrage strategy investing in definitive, publicly announced mergers and acquisitions. The fund has an exposure of 73.8% in the United States, followed by an exposure of 9.5% in the U.K. The product charges 77 bps in annual fees (See: All Hedge Fund ETFs).
Why the Move?
The merger & acquisition (M&A) corner of the broad stock market has been an area to watch lately, given the increase in global M&A deal announcements for the second consecutive quarter. According to S&P Global, global M&A announcements rose by 7.3% year over year, breaking a trend of declining announcements.
Easing financial market conditions driven by the Fed’s interest rate cut in September, increasing expectations of further interest rate cuts and moderating inflation levels also drove the M&A market.
More Gains Ahead?
Currently, ARB might continue its strong performance in the near term, with a positive weighted alpha of 6.59 (as per Barchart.com), which gives cues of a further rally.
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Merger & Acquisition ETF (ARB) Hits New 52-Week High
For investors seeking momentum, AltShares Merger Arbitrage ETF (ARB - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 8.37% from its 52-week low price of $25.81/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:
ARB in Focus
The underlying Water Island Merger Arbitrage USD Hedged Index reflects a pure-play, global merger arbitrage strategy investing in definitive, publicly announced mergers and acquisitions. The fund has an exposure of 73.8% in the United States, followed by an exposure of 9.5% in the U.K. The product charges 77 bps in annual fees (See: All Hedge Fund ETFs).
Why the Move?
The merger & acquisition (M&A) corner of the broad stock market has been an area to watch lately, given the increase in global M&A deal announcements for the second consecutive quarter. According to S&P Global, global M&A announcements rose by 7.3% year over year, breaking a trend of declining announcements.
Easing financial market conditions driven by the Fed’s interest rate cut in September, increasing expectations of further interest rate cuts and moderating inflation levels also drove the M&A market.
More Gains Ahead?
Currently, ARB might continue its strong performance in the near term, with a positive weighted alpha of 6.59 (as per Barchart.com), which gives cues of a further rally.