Investors seeking momentum may have Invesco DWA Healthcare Momentum ETF (PTH - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of PTH are up approximately 61.4% from their 52-week low of $69.41/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
PTH in Focus
The underlying DWA Healthcare Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. PTH charges investors 60 basis points in fee per year (see all Health Care ETFs here).
Why the move?
Healthcare and biotech stocks and ETFs soared higher amid the ongoing medical emergency. Large pharma and biotech companies are working on medicines, vaccines and testing kits. Most recently, Novavax (NVAX) just received the largest-ever investment from Coalition for Epidemic Preparedness Innovations (CEPI), a global coalition supporting COVID-19 vaccine development. As a result, the stock gained 30.8% on May 11 and added 36.7% before market. The stock Novavax takes about 3.60% of the fund PTH.
More Gains Ahead?
Currently, PTH has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So, it is difficult to get a handle on its future returns one way or another. The fund has a weighted alpha of 47.70. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.
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