For investors seeking momentum, the Avantis Inflation Focused Equity ETF AVIE is probably on the radar now. The fund just hit a 52-week high and is up 30.6% from its 52-week low price of $60.87 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.

AVIE in Focus

The fund provides exposure to a diversified set of U.S. companies in sectors and industries that have historically, or are expected to, correlate with inflation over the long term. The fund charges 25 basis points (bps) in annual fees (See: all Style-Box All-Cap Blend ETFs here).

What Led to the Rise?

With persistent inflation driving market sentiment, investors have tilted allocations toward cash-flow-generative, defensive value stocks of late. AVIE benefited from this trend directly through its heavy weightings in resilient, inflation-correlated sectors — specifically energy, healthcare, and financial services. Supported by a broad rally and institutional accumulation across large-cap value equities, the fund’s underlying holdings gained strong momentum, propelling AVIE to touch a new 52-week peak.

More Gains Ahead?

AVIE may continue its strong performance in the near term, with a positive weighted alpha of 28.31 (as per Barchart.com), which suggests a further rally.   

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This article originally published on Zacks Investment Research (zacks.com).

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