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Small Cap Technology ETF (PSCT) Hits New 52-Week High

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For investors seeking momentum, PowerShares S&P SmallCap Information Technology ETF (PSCT - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 1.3% from its 52-week low price of $60.69/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.

PSCT in Focus

PSCT focuses on the technology segment of the U.S. market, holding 98 stocks in its basket. It is a small cap centric fund with key holdings in the electronic equipment, semiconductors and software segments. The fund charges investors 29 basis points a year in fees and has top holdings in Take-Two Interactive Software, Cirrus Logic and Blackbaud (see: all the Technology ETFs here).

Why the Move?

The technology sector has been an area to watch lately given the better-than-expected second quarter earnings results. Moreover, being an economic sensitive sector, renewed momentum in the U.S. economy also had a positive impact. Moreover, a rise in speculations about a sooner-than-expected interest rate hike is likely to have a lesser impact on the sector due to huge cash piles on their balance sheets.     

More Gains Ahead?

Currently, PSCT has a Zacks ETF Rank #2 (Buy) with a High risk outlook, suggesting outperformance in the months ahead. In addition to a positive weighted alpha of 15.58, 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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