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Technology ETF (IGM) Hits New 52-Week High
For investors seeking momentum, iShares Expanded Tech Sector ETF (IGM - Free Report) is probably on radar. The fund just hit a 52-week high and is up 56% from its 52-week low price of $272.47/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 of where it might be headed:
IGM in Focus
iShares Expanded Tech Sector ETF offers broad exposure to the technology sector and technology-related companies in the communication services and consumer discretionary sectors. It has key holdings in semiconductors, interactive media & services, and systems software. IGM charges 41 bps in annual fees. (see: all the Technology ETFs here).
Why the Move?
The technology sector has been an area to watch lately, given a decline in Treasury yields. Bets that the Fed is nearing the end of its interest rate hiking cycle have renewed confidence in the sector and particularly favored technology stocks. As the tech sector relies on borrowing for growth, it is cheaper to borrow more money for initiatives when interest rates are low.
More Gains Ahead?
Currently, IGM has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces 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.