Should You Play High Beta ETFs Now? (Revised)
Zacks Investment Research | Apr 18, 2018 01:48AM ET
Looks like heightened trade tensions between China and the United States and investors’ fear about the crash in technology stocks — that spooked Wall Street in the last one month — have eased. And geopolitical tension in the Middle East thanks to the recent Syria issue is not strong enough to cause an upheaval in the market (read: LVHB
The ETF is based on the Lunt Capital US Large Cap Equity Rotation Index, which looks to rotate between low-volatility and high-beta stocks on the S&P 500. The strategy intends to seize alpha created by the wide dispersion between low volatility and high beta stocks. The fund holds about 100 stocks in the portfolio.
No stock accounts for more than 1.40% of the fund. Coca-Cola Company (NYSE:KO), Ecolab Inc (NYSE:ECL) and PepsiCo (NASDAQ:PEP) hold the top three spots of the fund. Financials (25.1%), Utilities (20.6%) and Industrials (17.7%) are the top three sectors. The fund charges 49 bps in fees.
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(We are reissuing this article to correct a mistake. The original article, issued on April 16, 2018, which incorrectly mentioned the name of LVHB as Elkhorn Lunt Low Vol/High Beta Tactical ETF instead of Innovator Lunt Low Vol/High Beta Tactical ETF, should no longer be relied upon.)
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