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Buyback ETF (PKW) Hits New 52-Week High

Sanghamitra Saha
Wall Street closed mostly lower on Wednesday as trade tensions between the United States and China lingers.

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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