For investors seeking momentum, Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 16% from its 52-week low price of $26.89/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:
XSHD in Focus
This fund invests in small-cap stocks that have historically provided high dividend yields with lower volatility over the past 12 months. It has key holdings in real estate, financials and consumer staples that account for a double-digit allocation each. The ETF charges 30 basis points in annual fees (see: all the Small Cap ETFs here).
Why the Move?
The small-cap space has been an area to watch lately given the continued surge in the space amid chances of a full-blown trade war. This is because small-cap stocks, which are closely tied to the U.S. economy and do not have much exposure to the international market, are well insulated from these headwinds. The pint-sized stocks are considered safe and better plays if any political issue creeps into the picture. Further, honing in on the low-volatility and higher-dividend aspect in this market capitalization ensures further safety of income.
More Gains Ahead?
It seems that XSHD might remain strong given a high weighted alpha of 13.79% and a low 20-day volatility of 7.77%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
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