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Consumer Discretionary ETF (IEDI) Hits New 52-Week High

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For investors seeking momentum, iShares Evolved U.S. Discretionary Spending ETF (IEDI - Free Report) is probably on radar. The fund just hit a 52-week high and is up 60% from its 52-week low price of $27.79/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:

IEDI in Focus

This is an actively managed ETF that employs data science techniques to identify companies with exposure to the discretionary spending sector. It has key holdings in retailing, consumer services, and foods & staples retailing. The ETF charges 18 basis points in annual fees (see: all the Consumer Discretionary ETFs here).

Why the Move?

The consumer discretionary sector has been an area to watch lately given the booming economy, rapid pace of vaccination, and huge fiscal and monetary stimulus. The latest bouts of data indicate that the American economy is leading global growth and consumer spending, which accounts for more than two-thirds of the U.S. economic activity, is also picking up. The cyclical sectors like consumer discretionary are tied to economic activities and when growth improves, these perform well.

More Gains Ahead?

It seems that IEDI might remain strong given a high weighted alpha of 47.88 and a lower 20-day volatility of 9.60%. As a result, there is definitely still some promise for investors who want to ride on this rallying ETF.

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