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US Small Company ETF (IUSS) Hits a New 52-Week High

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Sweta Jaiswal, FRM
·2 min read
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For investors looking for momentum, Invesco RAFI Strategic US Small Company ETF IUSS is probably a suitable pick. The fund just hit a 52-week high and is up 150.2% from its 52-week low price of $14.26/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

IUSS in Focus

The fund is based on the Invesco Strategic US Small Company Index. IUSS has AUM of $33.4 million and charges 23 basis points in annual fees.

Why the Move?

Small-caps stocks, as indicated by the Russell 2000 Index, have been outperforming the broader market and hitting new all-time highs. The upside is being largely led by small-cap companies that are closely tied to the U.S. economy and thus are well-positioned to outperform when the economy improves. These stocks generally outperform on improvement in the U.S. economy. It is believed that wider coronavirus vaccine rollouts and introduction of another round of fiscal stimulus are making a strong case in favor of faster U.S. economic recovery in 2021. In the current scenario, funds like IUSS appear an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong as it has a positive weighted alpha of 84.58, which gives cues of further rally.

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