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Small-Cap Dividend Growers ETF (SMDV) Hits New 52-Week High

Sanghamitra Saha
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For investors seeking momentum, Russell 2000 Dividend Growers ETF (SMDV) is probably on radar now. The fund just hit a 52-week high and is up over 14.5% from its 52-week low price of $51.18 per 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:

SMDV in Focus    

The fund tracks the Russell 2000 Index and have increased dividend payments each year for at least 10 years. Utilities (24.94%), Industrials (14.07%), Financials (12.01%) and Consumer Staples (11.49%) take top four spots in the index. The product charges 40 bps in fees (see all Small Cap ETFs here).

Why the Move?

Small-cap stocks are more domestically-focused and thus not exposed to geopolitical risks and negative currency translations. Both criteria enabled small-cap stocks to cash in on an improving U.S. economy while dodging tensions stemming from trade war and a rising dollar. However, given the recent rally in the small-cap space, overvaluation concerns are sure to come. This is why investors probably tapped a quality ETF like Dividend Growers in the small-cap segment.

More Gains Ahead?

The fund has a Zacks ETF Rank #3 (Hold) with a medium risk outlook. It seems that this fund can be exercised a little further as evident by the positive weighted alpha of 9.50.

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PRO-SH R2000 DG (SMDV): ETF Research Reports
 
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