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U.S. Equity ETF (SCHB) Hits New 52-Week High

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For investors seeking momentum, Schwab U.S. Broad Market ETF (SCHB - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up nearly 19% from its 52-week low price of $58.24/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:

SCHB in Focus    

This ETF offers exposure to the broad U.S. stock market with a tilt toward large caps at 78%. It has key holdings in the information technology, financials, healthcare, consumer discretionary and industrials sectors. The fund is the low cost choice in the equity ETF world, charging just 3 bps in annual fees (see: all the Total U.S. Market ETFs here).

Why the Move?

The U.S. stock market has been an area to watch lately given that the S&P 500 is on the verge of hitting new highs anytime soon, being just 0.5% away from the peak it set on Jan 26. The dual tailwinds of strong corporate earnings and an improving economy have been fueling optimism in the stocks, offsetting concerns over global trade. A rising rate scenario is also signaling a strengthening economy, which will spur further growth in the stock market.

More Gains Ahead?

Currently, SCHB has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns in 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 further.

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