For investors seeking momentum, SPDR SSGA US Large Cap Low Volatility Index ETF (LGLV - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 24.9% from its 52-week low price of $83.75/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:
LGLV in Focus
The underlying SSGA US Large Cap Low Volatility Index is designed to track the performance of U.S. large capitalization companies that exhibit low volatility. The fund holds about 126 securities with no stock making up more than 1.94% of the fund. It charges 12 bps in fees (see all Style Box - Large Cap Blend ETFs here).
Why the Move?
Renewed trade tensions between the United States and China have sparked off global growth worries all over again. Global markets have been pretty tumultuous in early May. Though the talks are not completely dead, uncertainty looms large. This has probably brightened the appeal for this kind of low-volatility ETF.
More Gains Ahead?
The fund has a positive weighted alpha of 17.80 which hints at more gains. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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