For investors seeking momentum, Global X Guru Index ETF (GURU - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 29.8% from its 52-week low price of $20.86/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 on where it might be headed:
GURU in Focus
This fund seeks to generate alpha over the broad market by investing in highest conviction ideas from a select pool of hedge funds. This approach results in a well-diversified basket of 60 securities with key holdings in technology, consumer discretionary, healthcare and consumer staples. It charges investors 75 bps in annual fees (see: all the U.S. Total Market ETFs here).
Why the Move?
The U.S. equity market has been an area to watch lately given that the stocks are on fire and continuously scaling new highs. Stock market gurus like Warren Buffett, Bill Ackman, Daniel Loeb, Cark Icahn or David Einhorn have proven their supremacy by making huge money in this bullish market. Notably, most of the market rally was driven by these legends, whose bullish bets soared to levels not seen before the financial crisis in the first quarter.
More Gains Ahead?
This fund might remain strong given a high weighted alpha of 21.90% and a low 20-day volatility of 11.21%. As a result, there is still some promise for investors who want to ride on this surging ETF.
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