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ETF News And Commentary

Sanghamitra Saha

Mid-Cap Growth ETF (MDYG) Hits New 52-Week High

MDYG

Trades from $3

For investors seeking momentum, SPDR S&P 400 Mid Cap Growth ETF (MDYG - Free Report) is probably on radar now. The fund just hit a 52-week high and is up over 28.9% from its 52-week low price of $102.39/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:

MDYG in Focus    

This product offers exposure to U.S. mid-cap growth stocks. Information Technology, Financials, Health Care, Consumer Discretionary, Real Estate and Industrials are the top six sectors of the fund with a double-digit weight each. The fund charges 15 bps in fees (see: all Mid-Cap ETFs here).

Why the Move?

With the U.S. economy moving at a steady clip as evident by the 3.2% GDP growth in Q3, investors’ inclination toward growth ETFs is clear. On the other hand, mid-caps look to be timely bets right now as these are less perturbed by the negative currency translation on a stronger greenback thanks to their lesser foreign exposure. On the other hand, mid-cap stocks are not as volatile as small caps.

More Gains Ahead?

The fund has a Zacks ETF Rank #3 (Hold). So, it is hard to get a handle on its future returns one way or another. But it seems that MDYG might continue with its strength given a positive weighted alpha of 10.70. As a result, there is definitely still some promise for investors who want to ride on this surging ETF.

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