For investors seeking momentum, iShares Morningstar Small-Cap Growth ETF (JKK - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up nearly 29% from its 52-week low price of $148.72/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:
JKK in Focus
This fund offers exposure to small-cap companies whose earnings are expected to grow at an above-average rate relative to the market. It has key holdings in information technology, healthcare, consumer discretionary and industrials, and is highly diversified across components with none holding more than a 2.54% share. The product charges 30 bps in fees per year (see: all the Small Cap ETFs here).
Why the Move?
The small-cap space has been an area to watch lately given the growing concerns over chances of a trade war stemming from Trump’s proposed tariff plans. This is because small caps are considered safe and better plays if any political issue creeps up. In particular, these stocks could better insulate investors against Trump’s trade-protectionism policy. Being a growth fund, JKK is expected to outperform in a trending market (a market characterized by a prolonged uptrend).
More Gains Ahead?
JKK has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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