For investors seeking momentum, Invesco S&P SmallCap Consumer Discretionary ETF (PSCD Quick QuotePSCD - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up nearly 37.7% from its 52-week low price of $50.36/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.

 

 

The fund tracks the S&P SmallCap 600 Capped Consumer Discretionary Index, which reflects the performance of common stocks of US consumer discretionary companies. The fund holds 102 stocks in total. No stock accounts for more than 2.88% of the fund. The product charges 29 bps in fees (see all consumer discretionary ETFs here).

 

 

The consumer discretionary sector has been an area to watch lately. Greater spending along with solid economic data from a jobs perspective is creating a great situation for those in the consumer segment. Also, the small-cap segment has been outperforming this year given the strength in the U.S. dollar, trade tensions and geopolitical worries. Economic well-being at the domestic land is seen as beneficial for small-cap stocks. As a result, this small-cap consumer discretionary ETF has hit a high lately.

 

 

The fund has a Zacks Rank #2 (Buy). It seems that the fund will perform decently in the near term given a positive weighted alpha of 32.30.

 

 

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