High-Beta ETFs To Bet On Renewed Market Momentum

That said, high-beta stocks seek to capitalize on consistent growth with market-beating returns. This is because when markets soar, high-beta stocks experience larger gains than the broader market counterparts and thus, outpace the rivals. However, these exhibit a higher level of volatility.

We have highlighted five high-beta ETFs that could be a compelling choice for investors to tap market-beating returns. These funds have AUM of more than $50 million and offers exposure to various sectors:

Invesco S&P SmallCap 600 Pure Value ETF (RZV - Free Report) – Beta: 1.72

This fund provides exposure to the pure value segment of the small-cap market by tracking the S&P SmallCap 600 Pure Value Index. It has a well-diversified portfolio of 165 stocks with key holdings in sectors like financials, industrials, consumer discretionary and materials. The product has been able to manage $281 million in its asset and charges 35 bps in fees per year from investors. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook.

Invesco S&P MidCap 400 Pure Value ETF (RFV - Free Report) – Beta: 1.66

This fund provides pure exposure to the mid-cap value segment of the U.S. equity market by tracking the S&P MidCap 400 Pure Value Index. With AUM of $157.4 million, it holds 101 stocks in its basket. The product charges 35 bps in fees per year and trades in an average daily volume of 21,000 shares. It has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

Invesco S&P 500 High Beta ETF (SPHB - Free Report) – Beta: 1.59

This ETF tracks the performance of stocks from the S&P 500 Index with the highest beta over the past 12 months. It follows the S&P 500 High Beta Index, holding 101 stocks in its basket. More than 41.2% of the portfolio is allotted to information technology while consumer discretionary and energy round off the next two spots with a double-digit allocation. It has AUM of $1.6 billion and 0.25% in expense ratio.

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