U.S. Leveraged Financials ETF (FINU) Hits New 52-Week High

Investors seeking momentum may have ProShares UltraPro Financials ETF (FINU - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of FINU are up approximately 73.4% from their 52-week low of $59.7/share

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

FINU in Focus

FINU focuses on providing 3x exposure to financials companies in the U.S. equity market. FINU charges investors 95 basis points in fee per year. Its top holdings include Berkshire Hathaway Inc Class B, JP Morgan Chase & Co. and Bank of America Corp with more than 30% of the assets allocated to them (see all Leveraged equity ETFs here).

Why the move?

Of late, President Donald Trump’s tax reform agenda has been in the spotlight. Optimism about the success of the Republican tax reform bill in the Senate has led to a rally in the markets. Moreover, economists expect the financial sector to be the greatest winner from the tax reform. Trump’s success in passing his policies has opened possibilities of deregulation coming in.

More Gains Ahead?

Currently, FINU has a weighted alpha of 69.38. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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