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 about 32% from its 52-week low price of $39.01/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 Dorsey, Wright & Associates proprietary selection methodology that is designed to identify small-cap firms with powerful relative strength characteristics based on that company’s market performance. The product holds a basket of 199 stocks with key holdings in healthcare, industrials, financials, information technology and consumer discretionary. 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 growing concerns over the trade war arising from Trump’s proposed tariffs plan. This is because small caps are considered safe and better plays if any political issue creeps into the picture. In particular, these stocks could better insulate investors against Trump’s trade-protectionism policy.
More Gains Ahead?
The fund might sustain its strength given a high weighted alpha of 28.70% and a low 20-day volatility of 21.12%. As a result, there is still some promise for investors who want to ride on this surging ETF.
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