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Buyback ETF (PKW) Hits New 52-Week High

Sanghamitra Saha

For investors seeking momentum, Invesco Buyback Achievers ETF PKW is probably on radar now. The fund hit a 52-week high, and is up about 29.6% from its 52-week low price of $48.95/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:

PKW in Focus    

This ETF provides exposure to the NASDAQ US BuyBack Achievers Index. The index comprises of US securities issued by corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing 12 months. The fund has top holdings in Citigroup, Cisco Systems and Apple. The fund charges 63 bps in fees (see all Style Box - Large Cap Value ETFs here).

Why the Move?

Buyback activity has been on a tear of late. S&P Dow Jones Indices announced that preliminary fourth-quarter 2018 S&P 500 stock buybacks touched a fourth successive record of $223.0 billion. This beat the previous record of $203.8 billion created during Q3 of 2018 and also marks a 62.8% increase the year-ago period. The upbeat momentum has been benefitting the buyback ETF.

More Gains Ahead?

The fund has a positive weighted alpha of 12.30. So, there is definitely some promise for those who want to ride this surging ETF a little further.

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Invesco BuyBack Achievers ETF (PKW): ETF Research Reports
 
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