For investors seeking momentum, Guggenheim S&P SmallCap 600 Pure Growth ETF (RZG - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 25.2% from its 52-week low price of $98.02/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.
RZG in Focus
This ETF tracks the S&P SmallCap 600 Pure Growth Index, which measures the performance of securities that exhibit strong growth characteristics. Enanta Pharmaceuticals, BioTelemetry and Supernus Pharmaceuticals are the top three stocks of the fund. Health Care (27.9%), Information Technology (23.6%) and Consumer Discretionary (15.1%) are the top three sectors. The product charges 35 bps in fees (see all Small Cap ETFs here).
Why the Move?
The small-cap segment has been outperforming lately given the strength in the U.S. dollar, trade tensions and geopolitical worries. Economic well-being at the domestic land is seen as beneficial for small-cap stocks. Since the U.S. economy has been performing better than several other developed economies, this small-cap growth ETF has hit a high lately.
More Gains Ahead?
The fund has a Zacks Rank #3 (Hold). However, it seems that the fund will perform decently in the near term given a positive weighted alpha of 22.70.
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