For investors seeking momentum, iShares Morningstar Small-Cap Growth ETF is probably on radar now. The fund just hit a 52-week high and is up nearly 25.4% from its 52-week low price of $142.50/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:
JKK in Focus
This fund offers exposure to small-cap companies whose earnings are expected to grow at an above-average rate relative to the market. It has key holdings in information technology, healthcare, industrials and consumer discretionary, and is highly diversified across components with none holding more than 1.85% share. The product charges 30 bps in fees per year (see: all the Small Cap ETFs here).
Why the Move?
The small-cap space has been an area to watch lately given the passage of tax bill by House Republicans. Small companies pay huge taxes in America and a tax cut could come as a big boon to these. Additionally, a slew of upbeat economic data is fueling growth in these pint-sized stocks. Since these stocks are closely tied to the U.S. economy and do not have much exposure to the international market, these generally outperform on an improving American economy and are free from the clutches of any political malaise. In particular, growth stocks tend to outperform in a trending market (a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, JKK has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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Small Cap Growth ETF (JKK) Hits New 52-Week High
For investors seeking momentum, iShares Morningstar Small-Cap Growth ETF is probably on radar now. The fund just hit a 52-week high and is up nearly 25.4% from its 52-week low price of $142.50/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:
JKK in Focus
This fund offers exposure to small-cap companies whose earnings are expected to grow at an above-average rate relative to the market. It has key holdings in information technology, healthcare, industrials and consumer discretionary, and is highly diversified across components with none holding more than 1.85% share. The product charges 30 bps in fees per year (see: all the Small Cap ETFs here).
Why the Move?
The small-cap space has been an area to watch lately given the passage of tax bill by House Republicans. Small companies pay huge taxes in America and a tax cut could come as a big boon to these. Additionally, a slew of upbeat economic data is fueling growth in these pint-sized stocks. Since these stocks are closely tied to the U.S. economy and do not have much exposure to the international market, these generally outperform on an improving American economy and are free from the clutches of any political malaise. In particular, growth stocks tend to outperform in a trending market (a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, JKK has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>