Low Volatility ETF Hits New 52-Week High

For investors seeking momentum, SPDR SSGA US Large Cap Low Volatility Index ETF LGLV is probably on the radar. The fund just hit a 52-week high and is up 28% from its 52-week low price of $129.77/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:

LGLV in Focus

SPDR SSGA US Large Cap Low Volatility Index ETF provides exposure to stocks with lower volatility receiving the highest weights, subject to liquidity constraints. It has key holdings in financials, industrials and real estate with double-digit exposure each. The product charges 12 bps in annual fees.

Why the Move?

The low volatility corner of the broader market has been an area to watch lately, given heightened volatility. While growing anxiety about a slowing U.S. economy, geopolitical tensions and the looming November elections continue to weigh on stocks, the prospect of rate cuts in September has rekindled investors' confidence in the stock market. Low-volatility ETFs have the potential to outpace the broader market in bearish conditions or in an uncertain environment, providing significant protection to the portfolio.

More Gains Ahead?

Currently, LGLV might continue its strong performance, given its weighted alpha of 20.79 and a low 20-day volatility of 9.54%, per barchart .com.

To read this article on Zacks.com click here.