For investors seeking momentum, VictoryShares Small Cap Free Cash Flow ETF SFLO is probably on the radar. The fund just hit a 52-week high and is up 50.8% from its 52-week low price of $20.50/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 of where it might be headed:
SFLO in Focus
The underlying Victory U.S. Small Cap Free Cash Flow Index invests in profitable U.S. small-cap companies trading at a discount with high free cash flow yields and favorable growth prospects. The product charges 49 bps in annual fees.
Why the Move?
Small-cap ETFs are showing resilience currently amid war jitters. Small-caps’ domestic focus, lower U.S. energy risks, a potentially less-hawkish Fed, and solid earnings momentum are positives. However, relatively high valuations may act as negatives.
More Gains Ahead?
SFLO might continue its strong performance in the near term, with a positive weighted alpha of 60.49 (as per Barchart.com), which gives cues of 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.
