Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

MidCap Dividend Arsistocrats ETF (REGL) Hits New 52-Week High

For investors seeking momentum, S&P MidCap 400 Dividend Aristocrats ETF (REGL) is probably on radar now. The fund just hit a 52-week high, which is up roughly 23.1% from its 52-week low price of $35.51/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:

REGL in Focus    

REGL focuses on mid-cap stocks which are currently members of the S&P MidCap 400 Index and have increased dividend payments each year for at least 15 years. REGL charges investors 40 basis points a year in fees and has top holdings in Valspar Corp, Nordson Corp and Telephone And Data Systems (see all mid-cap ETFs here).

Why the Move?

Since the Fed vowed to take it easy with policy tightening and long-term bond yields are at subdued levels, the drive for dividend is higher. Plus, a sagging dollar on a dovish Fed and an improving U.S. economy make a winning combination for mid-cap ETFs as this spectrum bears the traits of both large and small caps.

It has moderate international exposure which will remain unharmed in a weaker dollar environment. Focusing on stocks with consistent dividend payments also point to quality investing – a pre-requisite to make money in this volatile environment.

More Gains Ahead?

Currently, REGL has a positive weighted alpha of 12.86. A positive weighted alpha hints at more gains.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
PRO-SH SP400 DA (REGL): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report