We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
Leveraged Small-Cap ETF (SAA) Hits New 52-Week High
For investors seeking momentum, ProShares Ultra SmallCap600 (SAA - Free Report) is probably on radar now. The fund just hit a 52-week high and is up over 36% from its 52-week low price of $74.48/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:
SAA in Focus
This product offers 200% of the performance of the S&P SmallCap 600 Index. It charges 95 bps in fees (see all leveraged Equity ETFs here).
Why the Move?
Several factors boosted the small-cap segment lately. First, the Senate passed its version of the tax cut law which should prove beneficial for small companies. Plus, the next Fed chair Powell’s recent comments made the sector a winner. Powell said that the case for a rate hike in December is “coming together.” This is likely to translate into a higher dollar.
Small-cap stocks perform well in a rising dollar environment thanks to their greater domestic exposure. Last but not the least, the U.S. economy and consumer sentiment have been shaping up in recent months.
More Gains Ahead?
The fund has a positive weighted alpha of 24.90. A positive weighted alpha hints at more gains. As a result, there is definitely 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 >>