For investors seeking momentum, Deep Value ETF (HN:DVP) is probably on radar now. The fund just hit a 52-week high, which is up roughly 2.2% from its 52-week low price of $24.52/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.
DVP in Focus
DVP seeks to track the TWM Deep Value Index, which in turn closely follows the performance of 20 dividend paying S&P 500 stocks that are also believed to be undervalued. The fund has a large cap focus with key holdings in the materials, information technology and industrials segments. DVP charges investors 80 basis points a year in fees and has top holdings in Newmont Mining (NYSE:NEM), Exxon (NYSE:XOM) and Weyerhaeuser (see all Large Cap ETFs here).
Why the Move?
The large-cap value ETF space has been an area to watch lately as investors are looking to derive healthy gains from the rally in the U.S. markets. In an environment, when major benchmarks are hitting all-time record highs, investors are seeking to invest in potentially strong undervalued funds as they are poised to yield high returns in the current scenario. Moreover, stocks with favourable dividend yields are gaining attention in an environment when most of the government bonds are suffering from low or negative yields. These factors led the ETF to register significant gains in recent times.
More Gains Ahead?
Currently, DVP has a Zacks ETF Rank #3 (Hold) so it is hard to get a handle on its future returns one way or another. However, the fund has a positive weighted alpha of 6.16. A positive weighted alpha hints at more gains.
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DEEP-VALUE ETF (DVP): ETF Research Reports
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Zacks Investment Research