For investors seeking momentum, PowerShares Russell Top 200 Pure Value Portfolio (PXLV - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 13.2% from its 52-week lowA price of $34.14/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:
PXLV in Focus
PXLV provides exposure to stocks having strong value characteristics. With a basket of 69 stocks, it has key holdings in financials, utilities and energy. It charges 39 bps in annual fees (see: all the Large Cap ETFs here).
Why the Move?
The value corner of the broad U.S. stock market has been an area to watch given the passage of the tax bill by Senate that differs from the bill passed by the House in mid-November on several fronts. The reconciliation of both the bills could result in some volatility in the days ahead. In particular, value funds have the potential to deliver higher returns and exhibit lower volatility compared with growth and blend counterparts. These stocks ensure safety to investors and outperform the growth ones across all asset classes when considered on a long-term horizon.
More Gains Ahead?
Currently, PXLV has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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