For investors seeking momentum, iShares North American Tech ETF (IGM - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up roughly 39.2% from its 52-week low price of $149.33/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:
IGM in Focus
This fund provides exposure to 297 electronics, computer software and hardware, and informational technology companies. Holding 295 stocks in the basket, it is concentrated on the top three firms that account for nearly 8% of the portfolio each. Further, it has key holdings in Internet software and services, Internet & direct marketing retail, systems software, and semiconductors. The product charges 47 bps in fees per year (see: all the Technology ETFs here).
Why the Move?
The technology corner of the broad U.S. stock market has been an area to watch lately given that the tech-laden Nasdaq hit new highs crossing another milestone of 8,000. The emergence of cutting-edge technology such as cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence and machine learning as well as strong corporate earnings are acting as key catalysts. Additionally, the twin tailwinds of Trump’s tax reform plan and a rising interest rate scenario are pushing the stocks higher.
More Gains Ahead?
Currently, IGM has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, 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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