For investors seeking momentum, PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 24.4% from its 52-week low price of $43.86/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.
PEZ in Focus
This ETF tracks the DWA Consumer Cyclicals Technical Leaders Index, which measures the performance of companies that are showing relative strength, and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. Amazon.com, O'Reilly Automotive and Ross Stores are the top three stocks of the fund. The product charges 60 bps in fees (see all Consumer Discretionary ETFs here).
Why the Move?
With U.S. economic growth at a solid clip and job growth steady, consumer discretionary stocks are likely to outperform. Investors should note that cyclical sectors likeconsumer discretionary perform well in a rising rate environment that we are witnessing currently in the United States.
More Gains Ahead?
The fund gas a Zacks ETF Rank #2 (Buy). It seems that the fund will perform decently in the near term given a positive weighted alpha of 22.00.
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