For investors seeking momentum, iShares International Developed Low Volatility ETF IDLV is probably on the radar. The fund just hit a 52-week high and is up 18.4% from its 52-week low of $27.11 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:
IDLV in Focus
The S&P BMI International Developed Low Volatility Index is compiled, maintained and calculated by Standard & Poors and consists of the 200 least volatile stocks of the S&P Developed ex. US and South Korea LargeMid Cap BMI Index over the past 12 months. IDLV charges 25 bps in annual fees. (see: all Foreign Large Blend ETFs here).
Why the Move?
Wall Street has experienced massive volatility so far this year, while international markets have remained relatively stable or gained momentum. Trade uncertainty under the new U.S. administration has fueled concerns about rising inflation and a slowing U.S. economy, which has worked in favor of international markets.
Most international markets and ETFs have been undervalued in comparison to U.S. stocks and ETFs. The European Central Bank has been on a rate-cut spree. In contrast, the United States has taken a different approach as the Department of Government Efficiency has prioritized budget cuts, reducing federal expenditures rather than expanding them. The Fed has also been acting less dovish.
As a result, this international low-volatility dividend-paying ETF have been in very good shape lately. The ETF IDLV yields 3.05% annually.
More Gains Ahead?
IDLV might remain strong, given its weighted alpha of 17.73 . There is definitely still some promise for investors who want to ride on this surging ETF.
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Invesco S&P International Developed Low Volatility ETF (IDLV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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