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Value ETF (IWX) Hits New 52-Week High

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For investors seeking momentum, iShares Russell Top 200 Value ETF (IWX - Free Report) is probably on radar. The fund just hit a 52-week high and is up 46% from its 52-week low of $44.95 per 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.

IWX in Focus

This fund provides exposure to large U.S. companies that are thought to be undervalued by the market relative to comparable companies. It has key holdings in financials, healthcare, communication and industrials. The ETF charges 20 basis points in fees (see: all the Large Cap Value ETFs here.

Why the Move?

The value corner of the broad investing world has been an area to watch lately as investors rotate out of growth into the under-priced value stocks. Record amounts of stimulus and COVIOD-19 vaccinations will spur rapid economic growth that will boost consumer spending and in turn lift value stocks. Additionally, the combination of improvement in corporate earnings growth and expectation for quicker inflation bode well for value investing.

More Gains Ahead?

Currently, IWX has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, 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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