Investors seeking momentum may have iShares U.S. Financials ETF (IYF - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of IYF are up approximately 24.17% from their 52-week low of $88.20/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
IYF in Focus
IYF focuses on providing exposure to the U.S. financial sector. The fund has a large cap focus. It charges 44 basis points in fees per year and has top holdings in Berkshire Hathaway Inc Class B, JP Morgan Chase & Co and Bank of America Corp with 7.01%, 6.77% and 5.00% allocation, respectively (as of August 3, 2017) (see all Financials ETFs here).
Why the Move?
The U.S. financial sector has been in the spotlight recently. There is increased optimism in the sector, owing to better-than-expected earnings. Moreover, hopes of deregulation of banks have increased. Talks of amending the Volcker rule, which bans banks from speculating with their capital, have surfaced. This has increased investor optimism for less stringent rules on Wall Street.
More Gains Ahead?
Currently, IYF has a Zacks ETF Rank #2 (Buy) with a Medium Risk outlook. Moreover, the ETF has a weighted alpha of 22.08 and a low 14-day standard deviation of 6.54%. So, there is a promising outlook ahead for those who want to ride this surging ETF a little further.
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