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Value ETF (IWD) Hits New 52-Week High

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For investors seeking momentum, iShares Russell 1000 Value ETF (IWD - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 25.2% from its 52-week low of $104.07 per 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.

IWD in Focus

This fund provides exposure to U.S. companies that are thought to be undervalued by the market relative to comparable companies. It has key holdings in financials and healthcare. The ETF charges 19 basis points in fees (see: all the Large Cap Value ETFs here).

Why the Move?

The value corner of the broad investing world has been an area to watch lately given the continued volatility and uncertainty. This is because value ETFs seek to capitalize on inefficiencies in the market and have the potential to deliver higher returns with lower volatility compared with growth and blend counterparts. Additionally, they are less susceptible to trending markets and their dividend payouts offer safety in times of market turbulence.

More Gains Ahead?

Currently, IWD has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, 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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