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Large-Cap Growth ETF (IUSG) Hits New 52-Week High

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For investors seeking momentum, iShares Core S&P U.S. Growth ETF (IUSG - Free Report) is probably on radar. The fund just hit a 52-week high and is up around 41% from its 52-week low price of $72.77/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:

IUSG in Focus

This ETF offers exposure to a broad range of U.S. growth stocks, whose earnings are expected to grow at an above-average rate relative to the market. It has key holdings in information technology while consumer discretionary, communication and health care round off the next three spots. It is one of the low-cost choices in the large-cap space, charging 4 basis points in annual fees (see: all the All-Cap Growth ETFs here).

Why the Move?

The growth space of the broad U.S. stock market has been an area to watch lately given the booming stock market. Investors have rotated back into growth-oriented areas of the market in recent weeks on optimism surrounding the economic recovery. Growth investing focuses on capital appreciation rather than annual income or dividend. It is a stock-buying strategy that aims to profit from companies, which grow at above-average rates compared to their industry or the market. This is a more active attempt versus the value to build up the portfolio and generates more return on the capital invested. Growth funds tend to outperform when the stock market is on an uptrend.

More Gains Ahead?

Currently, IUSG 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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