For investors seeking momentum, iShares MSCI USA Value Factor ETF VLUE is probably on the radar. The fund just hit a 52-week high and has moved up 28% from its 52-week low price of $91.80 per share.
But are more gains in store for this ETF? Let us 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:
VLUE in Focus
iShares MSCI USA Value Factor ETF offers exposure to large and mid-cap U.S. stocks with lower valuations based on fundamentals. It has key holdings in information technology, financials and consumer discretionary. iShares MSCI USA Value Factor ETF charges 15 bps in annual fees (read: all the Large-Cap Value ETFs here).
Why the Move?
The value corner of the broad U.S. stock market has been an area to watch lately, given an uncertain U.S. trade policy and decline in tech stocks. This, coupled with growing speculation around Fed interest rate cuts, has shifted investor preference toward value. Value stocks seek to capitalize on the inefficiencies in the market and have the potential to deliver higher returns with lower volatility compared with the growth and blend counterparts. Additionally, value stocks are less susceptible to trending markets and their dividend payouts offer safety in times of market turbulence. Further, rate cuts are beneficial for value stocks.
More Gains Ahead?
Currently, VLUE has a Zacks ETF Rank #1 (Strong Buy), suggesting that the outperformance could continue in the months ahead. Many spaces that make up this ETF have a strong Zacks Industry Rank. Thus, there is definitely some promise for those who want to ride this surging ETF a little further.
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iShares MSCI USA Value Factor ETF (VLUE): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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