Small-Cap ETF (EQWS) Hits New 52-Week High

For investors seeking momentum, PowerShares Russell 2000 Equal Weight PortfolioEQWS is probably on radar now. The fund just hit a 52-week high, which is up roughly 44.6% from its 52-week low price of $26.13/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:

EQWS in Focus

The fund tracks the Russell 2000 Equal Weight Index which provides equal-weighted exposure to approximately 2,000 smaller-cap securities. EQWS charges investors 25 basis points a year in fees. It exchanges less than 1,000 shares a day. The fund holds 1,920 securities with none holding more than 0.32% of the assets. From a sector look, the fund is well diversified with industrials, information technology, consumer discretionary, energy and consumer staples making up for the top five sectors (see: all small-cap ETFs here ).

Why the Move?

The U.S. stock market has gained strength with U.S. president-elect Donald Trump planning expansive government spending, lesser financial regulation and increased tax cuts to boost economic growth. Trump's massive stimulus policies should benefit small caps more as these are closely tied to the U.S. economy and generate most of their revenues from the domestic market. Also, the regained momentum in the U.S. economy spread a strong air of optimism in the small-cap space.

More Gains Ahead?

Currently, EQWS has a Zacks ETF Rank of 3 or 'Hold' rating with a Medium risk outlook, so it is hard to get a handle on its future returns one way or the other. However, the fund has a positive weighted alpha of 20.50 . A positive weighted alpha hints at more gains.

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 >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

PWRSH-R2K EWP (EQWS): ETF Research Reports

To read this article on click here.

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.

Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More