Back to top

Image: Bigstock

Small Cap ETF (DWAS) Hits New 52-Week High

Read MoreHide Full Article

For investors seeking momentum, PowerShares DWA SmallCap Momentum Portfolio (DWAS - Free Report) is probably on radar now. The fund just hit a 52-week high and is up more than 40% from its 52-week low price of $34.17/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:

DWAS in Focus

This ETF offers exposure to the small-cap segment of the broad U.S. stock market. It follows the popular Dorsey, Wright & Associates proprietary selection methodology that is designed to identify small-cap firms with positive relative strength characteristics in an attempt to follow companies with strong forward momentum. The product holds a basket of 199 stocks with none holding more than 1.91% of assets. From a sector look, the fund is also well diversified with healthcare, information technology, financials, industrials, and consumer discretionary making up for the top five sectors. The fund charges investors 60 basis points a year in fees (see: all the Small Cap ETFs here).

Why the Move?

The small-cap space has been an area to watch lately given the tax reform proposal and a slew of upbeat economic data. This is because small companies pay huge taxes in America and a tax cut could be a big boon to these. Additionally, since small-cap stocks are closely tied to the U.S. economy and do not have much exposure to the international market, it generally outperforms on an improving American economy and are free from the clutches of any political malaise like Washington turmoil or North Korea tension.

More Gains Ahead?

The fund might sustain its strength given a high weighted alpha of 30.20% and a low 20-day volatility of 12.90%. As a result, there is still some promise for investors who want to ride on this surging ETF.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

INVS-DWA SC MO (DWAS) - free report >>

Published in