Equity Income ETF (DIVP) Touches Fresh 52-Week High
For investors seeking momentum, Cullen Enhanced Equity Income ETF DIVP is probably on the radar now. The fund just hit a 52-week high and is up 14.93% from its 52-week low price of $24.11 per share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
DIVP in Focus
It is an active fund that seeks long-term capital appreciation and current income by investing in large-cap, dividend-paying companies and then selectively writing covered calls on 25-40% of the portfolio holdings. The product charges 55 basis points (bps) in annual fees (See: All Style-Box Large-Cap Value ETFs here).
What Led to the Rise?
As investors have lately rotated into high-quality value equities, funds like DIVP have been benefiting from strong operational performance across top holdings like EOG Resources and major energy leaders. Furthermore, the fund's covered-call strategy must have allowed it to harvest attractive option premiums while capturing steady underlying stock gains, creating a dual-engine tailwind that propelled the ETF to a new 52-week peak.
More Gains Ahead?
DIVP may continue its strong performance in the near term, with a positive weighted alpha of 8.63 (as per Barchart.com), which suggests a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
