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For investors seeking momentum, SPDR S&P 500 Growth ETF (SPYG - Free Report) is probably on radar. The fund just hit a 52-week high and is up roughly 38.1% from its 52-week low price of $50.77/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:
SPYG in Focus
This ETF offers exposure to the large-cap stocks that exhibit the strongest growth characteristics based on sales growth, earnings change to price ratio and momentum. It has key holdings in information technology, consumer discretionary, communication services and healthcare. It charges 4 basis points in annual fees (see: all the Large 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 that the S&P 500 is hitting new all-time highs. The latest rally can be attributed to better-than-expected Q3 corporate earnings. Total earnings for the 192 S&P 500 members that have reported results so far are up 37.6% from the same period last year on 15.3% higher revenues, with 82.3% beating EPS estimates and 74% beating revenue estimates. Though the growth rates and beats percentages are below the same group of companies in the preceding period, these metrics are tracking well above the historical averages. In particular, growth stocks tend to outperform in a trending market (i.e., a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, SPYG has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, 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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Large-Cap Growth ETF (SPYG) Hits New 52-Week High
For investors seeking momentum, SPDR S&P 500 Growth ETF (SPYG - Free Report) is probably on radar. The fund just hit a 52-week high and is up roughly 38.1% from its 52-week low price of $50.77/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:
SPYG in Focus
This ETF offers exposure to the large-cap stocks that exhibit the strongest growth characteristics based on sales growth, earnings change to price ratio and momentum. It has key holdings in information technology, consumer discretionary, communication services and healthcare. It charges 4 basis points in annual fees (see: all the Large 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 that the S&P 500 is hitting new all-time highs. The latest rally can be attributed to better-than-expected Q3 corporate earnings. Total earnings for the 192 S&P 500 members that have reported results so far are up 37.6% from the same period last year on 15.3% higher revenues, with 82.3% beating EPS estimates and 74% beating revenue estimates. Though the growth rates and beats percentages are below the same group of companies in the preceding period, these metrics are tracking well above the historical averages. In particular, growth stocks tend to outperform in a trending market (i.e., a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, SPYG has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, 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.