Soundwatch Hedged Equity ETF SHDG is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has jumped 10.6% from its 52-week low price of $30.62 per share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook to get a better idea of where it might head.
SHDG in Focus
This is an active fund that seeks to provide long-term capital appreciation. The product charges 91 basis points (bps) in annual fees (You can see all Style Box - Large Cap Blend ETFs here).
Why the Move?
The fund hit a new 52-week high mainly because over 98% of its portfolio sits in core U.S. large-cap stocks through IVV, tracking the S&P 500 rally. Its options strategy — covered calls and put spreads — adds income and cushions downturns. This low-beta design protects capital in pullbacks.
More Gains Ahead?
SHDG might continue its strong performance in the near term, with a positive weighted alpha of 7.97 (per Barchart.com), which hints at a rally.
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This article originally published on Zacks Investment Research (zacks.com).