Investors looking for momentum can keep iShares U.S. Industrials ETF (IYJ - Free Report) on their radar now. The fund has just hit a new 52-week high. Shares of IYJ are up roughly 28.2% from its 52-week low price of $103.82/share.
But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might be headed:
IYJ in Focus
IYJ focuses on providing exposure to equities in the U.S. industrials sector. It charges 44 basis points in fees per year and has top holdings in General Electric, 3M, and Boeing with a little over 16% collective allocation to them (see all Industrial ETFs here).
Why the Move?
The U.S. Industrials sector has been gaining a lot of traction lately. President Trump’s plan to increase infrastructure spending has provided a great boost to this sector. Moreover, U.S. industrial production increased 2.2% year over year in May 2017, compared with a 2.1% rise in April. This was the biggest surge in production since January 2015.
More Gains Ahead?
Currently, IYJ has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So it is hard to get a handle on its future returns one way or another. The fund has a weighted alpha of 21.8 and a low 14-day standard deviation of 5.81%. So, there is still some promise for those who want to ride this surging ETF a little further.
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