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Low Volatility ETF (LGLV) Hits New 52-Week High

ByZacks Investment Research
Published 03/31/2019, 10:04 PM
Updated 07/09/2023, 06:31 AM

For investors seeking momentum, SPDR SSGA US Large Cap Low Volatility Index ETF LGLV is probably on the radar now. The fund just hit a 52-week high and is up about 20% from its 52-week low price of $83.75.

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:

LGLV in Focus

This ETF provides exposure to the largest 1000 U.S. stocks based on market cap that exhibit low volatility. It has key holdings in financials with one-fourth share while information technology and industrials round off the next two spots with double-digit exposure each. The fund charges 12 basis points in annual fees (read: all the Large Cap Blend ETFs here).

Why the Move?

The low volatility corner of the broader market has been an area to watch lately given the bouts of volatility and uncertainty related to global growth and Brexit. Notably, low volatility products have the potential to outpace the broader market in bearish conditions or in an uncertain environment, providing significant protection to the portfolio. These funds include more stable stocks that have experienced the least price movement in their portfolio. Further, these are allocated primarily to defensive sectors that usually have a higher distribution yield than the broader markets.

More Gains Ahead?

It seems that LGLV might remain strong, given a higher weighted alpha of 12.80% and low risk as depicted by 20-day volatility of 8.57%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.

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SPDR SSgA US Large Cap Low Volatility Index ETF (LGLV): ETF Research Reports

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Zacks Investment Research

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