Large-Cap ETF (DJD) Hits New 52-Week High

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December 4, 2018 2:33pm ETF BASIC NEWS

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From Sweta Killa: For investors seeking momentum, Invesco Dow Jones Industrial Average Dividend ETF (DJD – Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 15% from its 52-week low price of $31.82/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:

DJD in Focus    

This ETF offers exposure to high-yielding companies included on the Dow Jones Industrial Average by their 12-month dividend yield over the prior 12 months. It has key holdings in consumer staples, information technology, health care, industrials and energy. The product charges 7 bps in annual fees from investors (see: all the Large Cap ETFs here).

Why the Move?

The U.S. stock market has been an area to watch lately given the renewed rally in the stock market. In particular, the smart-beta strategy helps to capture market inefficiencies in a transparent way by adding extra metrics like dividends, volatility, revenue, earnings, momentum, equal weight and other fundamental factors to the market cap or rules-based indices. The strategy provides investors an opportunity to increase portfolio diversification, reduce risk and enhance returns (alpha generation) over time.

More Gains Ahead?

It seems that DJD might remain strong given a positive weighted alpha of 10.00% and a low 20-day volatility of 17.02%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.

The Dow Jones Industrial Average Dividend ETF (DJD) was trading at $35.83 per share on Tuesday afternoon, down $0.69 (-1.89%). Year-to-date, DJD has gained 5.47%, versus a 2.35% rise in the benchmark S&P 500 index during the same period.

DJD currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #66 of 82 ETFs in the Large Cap Value ETFs category.

This article is brought to you courtesy of Zacks.

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