For investors seeking momentum, iShares Edge MSCI Min Vol USA ETF (USMV - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up nearly 12.1% from its 52-week low price of $49.50/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.
USMV in Focus
The fund tracks the MSCI USA Minimum Volatility (USD) Index, which is composed of U.S. equities that have lower volatility characteristics relative to the broader U.S. equity market. Information Technology (21.35%), Health Care (14.94%) and Consumer Staples (11.18%) are the top three sectors of the fund. The product charges 15 bps in fees (see all Large Cap ETFs here).
Why the Move?
Given escalating trade tensions between the United States and China, investors apprehended more volatility in the market. Consequently, this low volatility U.S. ETF has gained momentum.
More Gains Ahead?
The fund has a Zacks ETF Rank #3 (Hold). It seems that the fund will perform decently in the near term given a positive weighted alpha of 12.00.
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