For investors seeking momentum, Vanguard U.S. Minimum Volatility ETF VFMV is probably on the radar. The fund just hit a 52-week high and is up 20.46% from its 52-week low price of $106.80/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:
VFMV in Focus
The fund employs an active strategy, investing in securities that seek to provide long-term capital appreciation with lower volatility relative to the broad U.S. equity market. The product charges 13 bps in annual fees (See: All Cap Blend ETFs).
Why the Move?
The low volatility corner of the broader market has been an area to watch lately, given rising uncertainty fueled by tariffs introduced by President Trump which increase the likelihood of a trade war and concerns over an economic slowdown. Recent unfavorable inflation data and expectations of reciprocal tariffs to further put upward pressure on price levels, make this fund a good bet. Low-volatility ETFs have the potential to outpace the broader market in bearish conditions or an uncertain environment, providing significant protection to the portfolio.
More Gains Ahead?
Currently, VFMV might continue its strong performance in the near term, with a positive weighted alpha of 16.31 (as per Barchart.com), which gives cues of a further rally.
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Vanguard U.S. Minimum Volatility ETF (VFMV): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
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