For investors seeking momentum, Global minimum volatility ETF ACWV is probably on radar. The fund just hit a 52-week high and is up 22.1% from its 52-week low price of $78.07 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 on where it might be headed:
ACWV in Focus
The underlying MSCI All Country World Minimum Volatility Index measures the combined performance of equity securities in both emerging and developed markets that have lower absolute volatility. The fund charges 20 bps in fees and yields about 2.12% annually.
Why the Move?
Since markets have been volatile lately due to rough U.S.-China trade relations as well as talks of Trump impeachment and soft consumer confidence data, seeking refuge in low-volatility products rather than sticking to highly-risky options can help investors to endure the geopolitical storm. This kind of products provide hedge against economic uncertainty.
More Gains Ahead?
The fund has a positive weighted alpha of 10.20. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer, especially if uncertainty prevails.
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iShares Edge MSCI Min Vol Global ETF (ACWV): ETF Research Reports
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Zacks Investment Research