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Low-Beta ETF (USLB) Hits New 52-Week High

Sweta Killa
Torchmark's (TMK) Q3 rides high on better premiums at the Life and Health segments as well as benefits from lower share count.

For investors seeking momentum, Invesco Russell 1000 Low Beta Equal Weight ETF USLB is probably on radar now. The fund just hit a 52-week high and is up about 12.7% from its 52-week low price of $28.80/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:

USLB in Focus    

This fund offers exposure to stocks that exhibit low-beta characteristics. It has key holdings in financials, real estate, information technology, consumer discretionary and industrials. The product charges investors 35 bps a year in fees (see: all the Large Cap ETFs here).

Why the Move?

The low-beta corner of the broad stock market has been an area to watch lately given escalating trade tensions between the United States and China though strong earnings and improving economy are acting as twin tailwinds. In particular, low-beta products exhibit greater levels of stability than their market-sensitive counterparts and will usually lose less when the market is crumbling. Despite lesser risks and lower returns, these are considered safe and resilient amid uncertainty.

More Gains Ahead?

Currently, USLB has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns in one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little further.

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PWRSH-RU LBEWP (USLB): ETF Research Reports
 
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