U.S. Markets closed

Low Volatility ETF (FDLO) Hits New 52-Week High

Sanghamitra Saha
RLI Corp. (RLI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

For investors seeking momentum, Fidelity Low Volatility Factor ETF FDLO is probably on the radar now. The fund just hit a 52-week high and is up nearly 18.4% from its 52-week low price of $27.81/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.

FDLO in Focus      

The fund tracks the Fidelity U.S. Low Volatility Factor Index, which reflects the performance of stocks of large and mid-capitalization U.S. companies with lower volatility than the broader market. Information Technology (25.76%), Financials (14.38%), Health Care (13.69%) and Consumer Discretionary (12.84%) are the top four sectors of the fund. The product charges 29 bps in fees (see all Large Cap ETFs here).

Why the Move?  

Given escalating trade tensions between the United States and China, investors probably apprehended more volatility in the market. After targeting each other’s $34-billion worth of imports, China announced on Aug 8 that it would enact a 25% tariff on U.S. imports worth $16 billion, including crude oil, diesel coal and cars in retaliation to the tax on an equal amount of imports to be enacted by U.S. authorities from Aug 23. Consequently, this low-volatility U.S. ETF has gained momentum.

More Gains Ahead?

It seems that the fund will perform decently in the near term given a positive weighted alpha of 17.70.

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
 
FID-LV FACTOR (FDLO): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
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