For investors seeking momentum, SPDR Russell 1000 Yield Focus ETF (ONEY - Free Report) is probably on radar now. The fund just hit a 52-week high and is up around 12% from its 52-week low price of $65.47/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:
ONEY in Focus
This fund offers exposure to large-cap securities demonstrating a combination of core factors (high value, high quality, and low size characteristics), with a focus factor comprising high yield characteristics. It has key holdings in consumer discretionary, financial services, producer durables and utilities. The ETF charges 20 basis points in annual fees (see: all the Large Cap ETFs here).
Why the Move?
The yield corner space of the broad U.S. stock market has been an area to watch lately given the bouts of volatility that led to the worst start to September since 2008 for the Nasdaq. Yield-focused products offer safety in the form of payouts, while at the same time provide stability in the form of mature companies that are less volatile to the large swings in stock prices. These securities are the major sources of consistent income for investors to create wealth when returns from the equity market are at risk.
More Gains Ahead?
Currently, ONEY has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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