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Technology ETF (IYW) Hits New 52-Week High
For investors seeking momentum, iShares Expanded Tech Sector ETF (IYW - Free Report) is probably on radar. The fund just hit a 52-week high and is up 71% from its 52-week low price of $72.09/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:
IYW in Focus
iShares Expanded Tech Sector ETF offers exposure to U.S. electronics, computer software and hardware, and informational technology companies. It has key holdings in software & services, semiconductors & semiconductor equipment, tech hardware & equipment, and media & entertainment. IYW charges 40 bps in annual fees. (see: all the Technology ETFs here).
Why the Move?
The technology sector has been an area to watch lately, given the euphoria surrounding the Fed’s dovish tone. The central bank has penciled in three rate cuts of 75 bps for 2024. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for initiatives when interest rates are low. The potential reductions in interest rates, coupled with the ongoing rise of AI, act as a major tailwind.
More Gains Ahead?
Currently, IYW 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.