For investors seeking momentum, iShares Russell Top 200 Growth ETF (IWY - Free Report) is probably on radar now. The fund just hit a 52-week high and is up around 25.5% from its 52-week low price of $65.87/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:
IWY in Focus
This fund offers exposure to large U.S. companies whose earnings are expected to grow at an above-average rate relative to the market. It has key holdings in information technology while consumer discretionary, health care and industrials round off the next three spots. It charges 20 basis points in annual fees (see: all the Large Cap ETFs here).
Why the Move?
The growth space of the broad U.S. stock market has been an area to watch lately given that the U.S. bull market is now the longest on record since World War II. The latest rally can be attributed to easing political and geopolitical tension, strong corporate earnings and improving economic growth amid looming trade tensions. In particular, growth stocks are leading the rally, as these tend to outperform in a trending market (i.e. a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, IWY 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 some promise for those who want to ride this surging ETF a little further.
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