For investors seeking momentum, the THOR Equal Weight Low Volatility ETF THLV is probably on the radar now. The fund just hit a 52-week high and is up 28.4% from its 52-week low price of $25.26 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.
THLV in Focus
The fund provides exposure to U.S. large-cap equities while attempting to lower volatility by avoiding sectors that are currently in a down-trending cycle. The fund charges 64 basis points (bps) in annual fees (See: all Style-Box Large-Cap Blend ETFs here).
What Led to the Rise?
THLV has recently benefited from equal-weight allocations to materials and health care, sectors that outperform during periods of market volatility. Its systematic avoidance of risk-off sectors allows it to capture market upside while maintaining a low-volatility posture, pushing the fund toward a 52-week high.
More Gains Ahead?
THLV may continue its strong performance in the near term, with a positive weighted alpha of 20.41 (as per Barchart.com), which suggests a further rally.
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THOR Equal Weight Low Volatility ETF (THLV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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