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Small-Cap ETF (SMMD) Hits New 52-Week High

Zacks Equity Research
Updated
Investors need to pay close attention to Exact Sciences (EXAS) stock based on the movements in the options market lately.

For investors seeking momentum, the iShares Russell 2500 ETF SMMD is probably on radar. The fund just hit a 52-week high, and shares of SMMD are up roughly 39.2% from their 52-week low price of $35.09/share.

But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near term outlook to get a better idea on where it might be headed:

SMMD in Focus

SMMD focuses on the mid and small-cap segments of the U.S. market. It has key holdings in Information Technology (16.82%), Financials (15.59%), Industrials (15.35%), Healthcare (13.34%) and Consumer Discretionary (13.27%). SMMD charges investors 15 basis points a year in fees and has top holdings in ISHARES RUSSELL 2000 ETF IWM with weight of 45.19% (see all Small Cap ETFs here).

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Why the move?

The small-cap segment has benefited immensely from the slew of upbeat economic data and tax reform. The strengthening of the U.S. dollar has disrupted the foreign operations of large-cap companies, resulting in more investments getting diverted to this division of the market. Also, the presence of core operations within the country, allows these companies to be less affected by geopolitical tension.

More Gains Ahead?

SMMD will perform decently with a positive weighted alpha of 23.17 and medium 20-day historical volatility of 8.63% in the near term. Investors need to be little bit vigilant with respect to the risk involved.

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ISHARS-R 2000 (IWM): ETF Research Reports
 
ISHARS-R2500 (SMMD): ETF Research Reports
 
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Zacks Investment Research
 
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