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

Sweta Killa

For investors seeking momentum, PowerShares S&P SmallCap Low Volatility Portfolio (XSLV) is probably on their radar now. The fund just hit a 52-week high, and is up nearly 115.4% from its 52-week low price of $16.15/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:


XSLV in Focus    


XSLV offers exposure to the U.S. stocks that have lower volatility characteristics in the S&P SmallCap 600 Index. It is a small cap centric fund with key holdings in financials while industrial also makes up for double-digit exposure. The fund is widely diversified across components with none accounting more than 1.28% of assets, charging investors 28 basis points a year in fees (see: all the Small Caps ETFs here).


Why the Move?


The low volatility corner of the broad investing world has been an area to watch lately as volatility levels rose once again. While the August and September market swoon has halted with improving domestic and international fundamentals, the signal of the December lift-off in the Fed’s recent testimony has increased volatility in the market.


More Gains Ahead?


It seems that XSLV might continue its strength given a mediocre weighted alpha of 6.80% and lower 20-day volatility of 13.36%. As a result, there is definitely still some promise for those who want to ride on this surging ETF.


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PWRSH-SP SC LVP (XSLV): ETF Research Reports
 
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