For investors seeking momentum, Invesco S&P 500 Pure Value ETF RPV is probably on the radar. The fund just hit a 52-week high and is up 22.26% from its 52-week low price of $80.40/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:
RPV in Focus
The underlying S&P 500 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P 500 Index. The product charges 35 bps in annual fees (See: All Large Cap Value).
Why the Move?
The value sector of the market has been an area to watch lately, given the rising uncertainty. Rising inflation concerns, continued geopolitical instability and potential systemic vulnerabilities in the AI-driven market rally make investing in value funds favorable.
Value stocks have a track record of long-term outperformance and resilience against market trends. They offer the potential for higher returns and lower volatility compared with growth and blend stocks.
More Gains Ahead?
Currently, RPV has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 11.85 (as per Barchart.com), which gives cues of a further rally.
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Invesco S&P 500 Pure Value ETF (RPV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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