Monarch Select Subsector Index ETFMSSS is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and jumped 29.7% from its 52-week low price of $29.00 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.
MSSS in Focus
This fund attempts to invest in the top 10 U.S. sectors and subsectors given the current market environment. The product charges 142 basis points in annual fees (You can see all Style-Box All-Cap-Blend ETFs here).
Why the Move?
The MSSS fund likely touched a new 52-week high due to concentrated momentum across its core sector holdings. A significant portion of the fund is tied to insurance providers through the Invesco KBW Property & Casualty Insurance ETF and SPDR S&P Insurance ETF, which have benefited immensely from a high-rate environment and strong premium pricing power. Additionally, healthcare allocations — via the iShares US Healthcare Providers ETF and iShares US Medical Devices ETF — are likely to have provided defensive growth. Secular demand and resilient corporate earnings in clinical healthcare insulated the ETF from broader market volatility, driving MSSS to a new 52-week peak.
More Gains Ahead?
MSSS might continue its strong performance in the near term, with a positive weighted alpha of 26.46 (per Barchart.com), which hints at a rally.
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Monarch Select Subsector Index ETF (MSSS): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
