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Mid-Cap Low Volatility ETF (XMLV) Hits New 52-Week High

Sweta Jaiswal, FRM

For investors looking for momentum, Invesco S&P MidCap Low Volatility ETF XMLV is probably a suitable pick. The fund just hit a 52-week high, up roughly 26.2% from its 52-week low of $42.11/share.

But does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

XMLV in Focus

The fund is based on the S&P MidCap 400 Low Volatility Index. It generally will invest at least 90% of its total assets in the securities that comprise the Index. The index is compiled, maintained and calculated by Standard & Poor's, consisting of 80 out of 400 medium-capitalization securities from the S&P MidCap 400 Index with the lowest realized volatility over the past 12 months. It has amassed $3.53 billion in its asset base. XMLV charges 25 bps in annual fees.

Why the Move?

Sino-US trade war tensions, uncertainty in market conditions due to geopolitical tensions, slowdown in the global economy and Brexit suspense are making investors jittery, adding to the lure of these funds. This is because these funds have the potential to outpace the broader market during events of turmoil, providing significant protection to the portfolio.

More Gains Ahead?

It seems that XMLV will remain strong given a positive weighted alpha of 13.70.

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Invesco S&P MidCap Low Volatility ETF (XMLV): ETF Research Reports
 
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