Markets

High Beta ETF (SPHB) Hits New 52-Week High

For investors seeking momentum, PowerShares S&P 500 High Beta Portfolio SPHB is probably on radar now. The fund just hit a 52-week high and is up about 57.6% from its 52-week low price of $24.40/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:

SPHB in Focus

SPHB provides exposure to the stocks from the S&P 500 Index with the highest beta over the past 12 months. Holding 98 stocks in its basket, it is highly diversified across components with none holding more than 1.83% share. The fund has key holdings in financials, energy and information technology. It charges 25 basis points in annual fees (see: all the Large Cap ETFs here ).

Why the Move?

The high beta corner of the broad U.S. stock market has been an area to watch lately given that the country's bourses are hitting multiple highs. The optimism strengthened following Trump's talks of tax cuts and infrastructure spending that reignited the post-election rally, which had stalled on concerns over his protectionist action and lack of clarity on policy reforms. When markets soar, high beta funds experience larger gains than the broader market counterparts and thus outpace their rivals.

More Gains Ahead?

It seems that SPHB might remain strong given a high weighted alpha of 51.20% and a low 20-day volatility of 12.89% . As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.

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POWERSH-SP5 HBP (SPHB): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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