For investors seeking momentum, the THOR Equal Weight Low Volatility ETF THLV is probably on the radar now. The fund just hit a 52-week high and is up 28.4% from its 52-week low price of $25.26 per share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
THLV in Focus
The fund provides exposure to U.S. large-cap equities while attempting to lower volatility by avoiding sectors that are currently in a down-trending cycle. The fund charges 64 basis points (bps) in annual fees (See: all Style-Box Large-Cap Blend ETFs here).
What Led to the Rise?
THLV has recently benefited from equal-weight allocations to materials and health care, sectors that outperform during periods of market volatility. Its systematic avoidance of risk-off sectors allows it to capture market upside while maintaining a low-volatility posture, pushing the fund toward a 52-week high.
More Gains Ahead?
THLV may continue its strong performance in the near term, with a positive weighted alpha of 20.41 (as per Barchart.com), which suggests a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
