Value ETF (LVHD) Hits New 52-Week High
For investors seeking momentum, Legg Mason Low Volatility High Dividend ETF LVHD is probably on radar. The fund just hit a 52-week high, and is up 20.5% from its 52-week low of $31.74 per 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 of where it might be headed:
LVHD in Focus
Legg Mason Low Volatility High Dividend ETF provides exposure to U.S. companies with a relatively high yield, low price and earnings volatility by tracking the QS Low Volatility High Dividend Index. Consumer staples dominates the fund’s portfolio with a 27.9% share, while utilities, industrials and real estate round off the next three spots. The ETF charges 27 basis points in fees (see: all the Large Cap Value ETFs here).
Why the Move?
The value corner of the broad investing world has been an area to watch lately, given the bouts of volatility and uncertainty on the stock market. This is because value ETFs seek to capitalize on inefficiencies in the market and have the potential to deliver higher returns with lower volatility compared with growth and blend counterparts. Additionally, they are less susceptible to trending markets and their dividend payouts offer safety in times of market turbulence.
More Gains Ahead?
Currently, LVHD has a Zacks ETF Rank #3 (Hold). Therefore, it is hard to get a handle on its future returns 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 some promise for those who want to ride this surging ETF a little further.
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Legg Mason Low Volatility High Dividend ETF (LVHD): ETF Research Reports
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