For investors seeking momentum, Aptus Behavioral Momentum ETF BEMO is probably on radar now. The fund just hit a 52-week high and is up nearly 27.7% from its 52-week low price of $26.56/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.
BEMO in Focus
The ETF looks to track the performance of the Aptus Behavioral Momentum Index tracks the performance of 25 large US-traded equity securities. It quantitatively ranks large U.S. companies based on a combination of momentum and irrational investor behavior and looks to gain exposure to only the highest ranked stocks. The product charges 79 bps in net fees (see all Large Cap ETFs here).
Why the Move?
The U.S. economy is on a strong footing. Plus, the present market momentum should be solid in the United States with the tax reform underway, President Trump announcing a drug plan which is in line with the best interest of drug makers and trade war fears with China showing signs of easing. The growth picture appearing from the Q1 earnings season is impressive. All these probably have boosted this momentum ETF.
More Gains Ahead?
It seems that the fund will perform decently in the near term given a positive weighted alpha of 24.60 . So, there is still some promise for investors who want to ride on this surging ETF a little further.
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 >>