From Zacks: For investors seeking momentum, ProShares Ultra QQQ (QLD – Free Report) is probably on the radar now. The fund just hit a 52-week high, and is up more than 59% from its 52-week low price of $55.63/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:
QLD in Focus
This ETF seeks to make huge profits from the soaring Nasdaq-100 Index in a very short period. It offers twice the return of the daily performance of the index, charging 0.95% in annual fees. The fund has AUM of $913.8 million and trades in heavy volume of more than a million shares in hand on average (see: all the Leveraged Equity ETFs here).
Why the Move?
The broad U.S. stock market has been an area to watch lately given the Trump-induced rally and the flow of upbeat data. Trump has promised to accelerate economic growth, spend big time on infrastructure, reduce regulations, cut taxes and create more jobs in the country that will likely flood companies with excess cash and earnings growth. Additionally, the Fed’s second lift-off in a decade and its hawkish stance on 2017 infused optimism into the market, pushing the stocks higher. In particular, most of the stocks in the tech-heavy Nasdaq index are not plagued by financial trouble in a rising interest rate environment given that they have huge cash piles.
More Gains Ahead?
It seems that QLD might remain strong given a high weighted alpha of 19.20% and a high 20-day volatility of 23.15%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF a little further.
This article is brought to you courtesy of Zacks Research.