For investors seeking momentum, Cambria Tail Risk ETFTAIL is probably on radar now.
The fund just hit a 52-week high, which is up roughly 35.1% from its 52-week low price of $19.70/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:
TAIL in Focus
This actively managed ETF seeks to mitigate significant downside market risk. The fund seeks to invest in a portfolio of out-of-the-money put options purchased on the U.S. stock market. The fund charges 59 bps in fees.
Why the Move?
There has been a bloodbath in the global market owing mainly to the partial government shutdown in the United States, President Donald Trump's increasingly unfriendly stance toward the Fed chairman and news that Treasury Secretary Steven Mnuchin called top executives from the six largest U.S. banks to discuss liquidity. All these gave this defensive ETF considerable strength.
More Gains Ahead?
The fund has a positive weighted alpha of 17.90 . So, there is definitely still some promise for those who want to ride on this surging ETF a little longer, especially if uncertainty prevails.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Latest Markets Videos
- The $12 Trillion "Once-in-a-Lifetime" Market Opportunity Investors Won't Want to Miss
- J.P. Morgan Says These 3 Stocks Could Surge Over 100% From Current Levels
- Forget Tesla's Battery Day, These EV Stories Are More Important
- ChargePoint, Switchback Energy Acquisition Enter Business Combination Agreement