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Minimum Volatility EAFE ETF (EFAV) Hits New 52-Week High

Sweta Jaiswal, FRM

For investors looking for momentum, iShares Edge MSCI EAFE Minimum Volatility ETF EFAV is probably a suitable pick. The fund just hit a 52-week high, up roughly 15% from its 52-week low of $64.95/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:

EFAV in Focus

EFAV looks to replicate the performance of international equity securities that have lower risk. It provides exposure to low-risk stocks in Europe, Australia, Asia and the Far East. The fund tracks the MSCI EAFE Minimum Volatility (USD) Index and holds 280 securities. It has amassed $12.35 billion in its asset base. EFAV charges 20 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?

Currently, the fund has a Zacks Rank of 3 (Hold) with a Low risk outlook. It seems that EFAV will remain strong given a positive weighted alpha of 10.27.

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iShares Edge MSCI Min Vol EAFE ETF (EFAV): ETF Research Reports
 
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