For investors seeking momentum, the Avantis Inflation Focused Equity ETF AVIE is probably on the radar now. The fund just hit a 52-week high and is up 27.4% from its 52-week low price of $56.29 per share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
AVIE in Focus
The fund provides exposure to a diversified set of U.S. companies in sectors and industries that have historically, or are expected to, correlate with inflation over the long term. The fund charges 25 basis points (bps) in annual fees (See: all Style-Box All-Cap Blend ETFs here).
What Led to the Rise?
As Fed Chair Jerome Powell recently noted, inflation remains persistent, which has likely led investors to flock to AVIE’s actively managed portfolio of inflation-resilient sectors such as Energy and Healthcare, helping the fund touch a 52-week high.
More Gains Ahead?
AVIE may continue its strong performance in the near term, with a positive weighted alpha of 20.48 (as per Barchart.com), which suggests a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
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