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Financials ETF (IYF) Hits New 52-Week High
US Financials Ishares ETF (IYF - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 32.15% from its 52-week low price of $66.91/share.
Are more gains in store for this ETF? Let us 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.
IYF in Focus
The Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index measures the performance of the financial sector of the U.S. equity market. The product charges 40 bps in annual fees (see: all Financials ETFs).
Why the Move?
The financial sector has been an area to watch lately, given that the Fed takes a dovish approach. Moderating inflation levels and the Fed adopting a dovish stance with expectations of interest rate cuts in 2024, make the yield curve steeper. A steepening yield curve is great for bank stocks as the pattern boosts banks’ net interest rate margins.
Better-than-expected performance of the U.S. economy in fourth-quarter 2023, with the real Gross Domestic Product (GDP) expanding at an annualized rate of 3.3%, bodes well for the sector.
More Gains Ahead?
Currently, IYF has a Zacks ETF Rank #3 (Hold) and a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 16.70, which gives cues of a further rally.