For investors seeking momentum, Invesco S&P MidCap Quality ETF XMHQ is probably on radar. The fund just hit a 52-week high and is up 31.40% from its 52-week low price of $61.49/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 of where it might be headed:
XMHQ in Focus
The underlying S&P MidCap 400 Quality Index is designed to provide equal-weighted exposure to approximately 800 securities of medium-sized companies in the larger U.S. equity market. The fund has major allocations to the industrial sector, with an exposure of 33.93%. The product charges 25 bps in annual fees (See: all the Mid Cap Blend ETF here).
Why the Move?
Amid mixed messages from the market, quality investing seems like a smart way to handle uncertain times. Quality investing means finding strong companies that make money steadily and have a strong edge over competitors. When you invest in these good companies, you can lower the chances of problems during economic changes and market ups and downs.
Moody’s recent downgrade of credit ratings for several small-mid sized banks and Fitch’s slashing of the U.S. credit rating due to projected fiscal challenges over the next three years and recurrent last-minute debt ceiling negotiations, create uncertainty in the economy. Sticky inflation also highlights the importance of quality ETFs.
More Gains Ahead?
Currently the fund has a r Zacks ETF Rank #2 (Buy) and might continue its strong performance given a positive weighted alpha of 19.90.
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Invesco S&P MidCap Quality ETF (XMHQ): ETF Research Reports
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