Consumer Staples ETF (RHS) Hits New 52-Week High

Sweta Killa

For investors seeking momentum, Invesco S&P 500 Equal Weight Consumer Staples ETF RHS is probably on radar. The fund just hit a 52-week high and is up about 29% from its 52-week low price of $111.19/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:

RHS in Focus    

RHS focuses on the consumer staples segment of the U.S. market with equal-weigh exposure across the securities. The fund has key holdings in food products, beverages, food & staples retailing, and household products. It charges investors 40 basis points a year in fees (see: all the Consumer Staples ETFs here).

Why the Move?

The consumer staples sector has been an area to watch out for lately given the return of volatility in the stock market due to uncertainty in the U.S.-China trade deal and new tariff drama by President Trump. This is because the consumer staples sector sees steady demand in the event of an economic downturn due to its low level of correlation with economic cycles. These generally act as a safe haven amid political and economic turmoil.

More Gains Ahead?

Currently, RHS has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.

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Invesco S&P 500 Equal Weight Consumer Staples ETF (RHS): ETF Research Reports
 
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