For investors looking for momentum, US Equity Dividend Select ETF RNDV is probably a suitable pick. The fund just hit a 52-week high and is up 54% from its 52-week low price of $25.04/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
RNDV in Focus
The US Equity Dividend Select ETF seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the Nasdaq Riskalyze US Large Cap Select Dividend Index. It has AUM of $21.2 million and charges 50 basis points in annual fees.
Why the Move?
Wall Street had a very rough start to 2022, largely due to rising 10-year Treasury yields. In fact, all the major indices are in the red zone for the month. Presently, market participants remain concerned about the uncertainty surrounding the pandemic, the fate of the fourth-quarter earnings season and the Federal Reserve’s decision to hike the interest rates sooner.
The Federal Reserve Open Market Committee’s two-day meeting will start on Jan 25. Post the meeting, the central bank is expected to give some hint on its decision on taking a more aggressive approach to policy tightening in 2022, considering the consistently hot inflation levels. This is making funds like RNDV an impressive investment option.
More Gains Ahead?
It seems like the Invesco DB Energy Fund will remain strong, with a positive weighted alpha of 13.17, which gives cues of a further rally.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
First Trust US Equity Dividend Select ETF (RNDV): ETF Research Reports
To read this article on Zacks.com click here.