For investors seeking momentum, Invesco DWA Industrials Momentum ETF (TSX:PRN) is probably on radar now. The fund just hit a 52-week high and is up about 41.9% from its 52-week low price of $47.61/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:
PRN in Focus
The underlying DWA Industrials Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The fund charges investors 60 basis points a year in fees (see: all Industrials ETFs here).
Why the Move?
Though slipped from the previous month, the ISM Manufacturing PMI for June in the United States beat expectations. In a separate study, IHS Markit reported that U.S. manufacturing PMI rose 50.6 in June from 50.1 in May. Such improvements in the U.S. manufacturing sector was favorable for the fund.
More Gains Ahead?
Currently, PRN has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. So, there is definitely still some promise for those who want to ride on this ETF a little longer.
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Invesco DWA Industrials Momentum ETF (PRN): ETF Research Reports
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Zacks Investment Research